Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Dolly Varden Silver (TSXV: DV) is raising C$15 million ($11m) for exploration at its Kitsault project in British Columbia. The company is issuing approximately 14.3 million charity flow-through shares at a price of C$1.05 each. A portion of the funds raised will be used for working capital.
The bought deal is offered by a syndicate of underwriters lead by Research Capital Corp. and Haywood Securities. The underwriters have been granted an aggregate cash fee equal to 5% of the gross proceeds.
Dolly Varden shareholders Hecla Canada and Fury Gold Mines will be entitled to acquire Dolly Varden shares at a price of C$0.80 each to maintain their pro rata equity interest in the company.
The Kitsault silver-gold project combines the former Dolly Varden and Torbit mines as well as the Homestake Ridge project in the Golden Triangle of British Columbia. The property is located 25 km by road to tide water. The project also contains the Big Bulk project containing a porphyry and skarn-style copper-gold mineralization.
Resources have been established for both the Dolly Varden and Homestake Ridge projects. The indicated material at Dolly Varden contains 3.4 million tonnes grading 299.9 g/t silver for 32.9 million contained oz., using a cut-off of 150 g/t silver. Homestake Ridge contains 736,000 tonnes grading 74.8 g/t silver for 1.8 million contained oz., using a cut of 2.0 g/t silver equivalent. Together the indicated resource contains 34.7 million oz. of silver.
There is also an inferred portion containing 29.3 million oz. of silver. The Dolly Varden portion is 1.3 million tonnes grading 277.0 g/t silver, and Homestake Ridge contains 5.5 million tonnes grading 100 g/t silver.
