Ecuador court gives green light for Silvercorp, Salazar’s El Domo project
The ruling removes the last major obstacle for the $250 million project, located 150 km northeast of Guayaquil.
Silver and gold producer Hecla Mining has participated in Dolly Varden Silver’s $7-million flow-through private placement, to maintain a 10.7% interest in the silver-focused junior.
As part of the financing, Hecla acquired a total of 807,846 shares of Dolly Varden, at C$0.89 per unit, for gross proceeds of C$718,983. This subscription was part of an Ancillary Rights Agreement allowing Hecla to maintain its pro-rata share in the company.
After the raise, the producer will hold 13.9 million shares of the explorer and 940,948 warrants. Assuming these warrants are exercised, Hecla would then hold 14.8 million shares of Dolly Varden, for a 11.3% shareholding.
According to the release, the shares are acquired for investment purposes and “Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Dolly Varden.” Hecla plans on evaluating this shareholding on an ongoing basis.
Hecla is a silver producer, with mines in Alaska, Idaho and Mexico and also generates gold from mines in Quebec and Nevada. This year, the company expects to generate 10.9 to 11.9 million oz. of silver and 195,000 to 208,000 oz. of gold.
Dolly Varden is a B.C.-focused silver explorer, where it holds 88 sq. km of ground within the past-producing Dolly Varden project in the northwestern part of the province, in the Golden Triangle. The property includes an indicated resource of 3.4 million tonnes, grading 300 g/t silver; and an inferred resource of 1.3 million tonnes, at 277 g/t silver.
(This article first appeared in the Canadian Mining Journal)
