HomeMarket NewsMiningHecla Investments in Dolly Varden Silver Reach New Heights

Hecla Investments in Dolly Varden Silver Reach New Heights

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Hecla Mining Company recently announced a significant investment in Dolly Varden Silver, upping its share ownership to over 15%. This move reflects Hecla’s confidence in the potential of Dolly Varden’s Kitsault Valley silver-gold project in northwest British Columbia.

Investment and Utilization of Funds

Hecla’s investment of $7.2 million will provide crucial funding for Dolly Varden’s exploration, resource expansion, and related costs in the Kitsault Valley project. Of the net proceeds, Dolly Varden plans to allocate $6 million towards the project, while the remaining balance will be used for working capital and general administrative expenses.

“Today’s financing news validates Hecla’s support for Dolly Varden Silver’s high-grade Kitsault Valley project in B.C.’s prolific Golden Triangle,” affirmed Dolly Varden CEO Shawn Khunkhun. “Hecla’s position as the world’s fastest-growing established silver producer, along with its status as the largest producer in the U.S., and its upcoming expansion into Canada, further solidify their commitment to our project.”

Kitsault Valley Project

Dolly Varden owns 100% of the Kitsault Valley silver-gold project. Situated in the southern tip of B.C.’s Golden Triangle, this project holds immense potential. It boasts an indicated resource of 4.2 tonnes containing 34.7 million ounces of silver, 166,000 ounces of gold, 2.87 million pounds of copper, and 1.25 million pounds of lead. Additionally, the project’s inferred resource for both areas stands at 6.8 million tonnes containing 29.2 million ounces of silver, 816,800 ounces of gold, 15.9 million pounds of copper, and 17.3 million pounds of lead.

Investment Agreement and Restructuring

As part of the investment agreement, Dolly Varden has agreed not to pursue any further debt or equity financings for the remainder of 2023. From January 1 to September 1, 2024, Dolly Varden will only engage in debt or equity financings with a prior consent from Hecla. The exception to this restriction is equity financings for net proceeds to Dolly Varden of up to $15 million, provided that the issue price per security is greater than $0.65. However, customary exceptions such as equity-based incentive compensation, conversions of existing securities, and non-cash strategic transactions are not subject to these restrictions.

Driving the Future of the Mining Industry

Hecla’s increased investment in Dolly Varden Silver signifies a promising future for the mining industry. With its unwavering commitment to exploring and expanding the Kitsault Valley project, Dolly Varden is poised to contribute significantly to the growing demand for silver, gold, copper, and lead. This strategic partnership between Hecla and Dolly Varden not only strengthens their positions in the industry but also bolsters the economic growth and development of the regions they operate in.

As the mining industry continues to evolve, collaborations such as this will drive innovation, productivity, and sustainability while simultaneously fostering long-term value for investors and stakeholders.


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