Read the story here. Advertise at Before It's News here.
Profile image
By Streetwise Reports (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Silver Explorer's Shares Rise After News of New Investor Breaks

% of readers think this story is Fact. Add your two cents.

Source: Streetwise Reports   10/06/2022

Dolly Varden Silver Corp. is adding a new institutional investor to its stable of big-name backers that includes Hecla Mining Co. and mining financier Eric Sprott.

Shares of Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) rose more than 50% this week over last week on news that it is getting a new large institutional investor.

Dolly Varden adds the investor to a stable of big-name backers that includes Hecla Mining Co. and mining financier Eric Sprott.

The stock went from CA$0.40 on September 29, 2022, to CA$0.63 two days after the news dropped that its largest shareholder, Fury Gold Mines Ltd. (FURY-T) is selling 7.4% of Dolly Varden’s common shares to the yet unnamed investor.

Dolly Varden adds the investor to a stable of big-name backers that includes Hecla Mining Co. (HL:NYSE) and mining financier Eric Sprott.

“We’ve got some very supportive institutional shareholders that already owned 38% before this transaction, and now we’ve just added another large institution to the register,” Dolly Varden Chief Executive Officer Shawn Khunkhun told Streetwise Reports. “Our institutional ownership goes up to about 45%.”

Fury has entered into an agreement to sell 17 million common shares at CA$0.40 to help finance continued exploration at its Eau Claire and Éléonore South Joint Venture projects in Quebec. Fury will continue to be Dolly Varden’s largest shareholder at 26%.

Fury Chief Executive Officer Tim Clark said his support of Dolly Varden and its Homestake Ridge mine, which it sold to the company last year, has not wavered.

“I’ve got 80% of our position still there, we own over a quarter of the company,” Clark said.

The Catalyst

It’s all about the timing of the transfer of the shares, both CEOs said.

There was a concern since Fury was also a junior mining company that it could, at the wrong time, need to sell some of its Dolly Varden shares to fund its exploration activities in Quebec, Dolly Varden Chief Executive Officer Shawn Khunkhun said.

“That usually comes at the worst time for both entities,” Khunkhun said.

Both companies are being “proactive” with the sale after mutually coming across the institutional investor interested in purchasing the shares. It puts Fury in a good cash position and gives Dolly Varden another institutional partner.

“This was a very elegant solution,” he said. The new institutional investor can “help us move this project along. And I think that’s very, very, very important and very strategic.”

Dolly Varden’s Kitsault Valley project in British Columbia’s Golden Triangle is made up of the Kitsol vein in the south and Homestake Ridge in the North.

Fury sold Homestake Ridge to focus on the James Bay properties and its Committee Bay project in Nunavut, Clark said.

“We wanted to simplify the story and focus on what we were great at,” he said.

Dolly Varden will receive no money from the transaction. The new investor was not anticipated to become a 10% or greater shareholder through the transaction.

Expanding Drilling Campaign

Dolly Varden just last month announced it was expanding its drilling campaign at Kitsault Valley after seeing promising results from a stepout drill hole. It added a fourth diamond drilling rig and expanded the program to 35,000 meters as it works to upgrade and expand the resources there.

The company said it intersected 19.85 meters of 584 grams per tonne silver (g/t Ag), 0.92% lead (Pb), 0.56% Zinc (Zn), and 0.19 g/t gold (Au), with “bonanza grade” silver mineralization of 4,326 g/t Ag, 4.21% Pb, 1.36% Zn, and 1 g/t Aug over 1.6 meters at the Wolf vein.

On the strength of those results, Dolly Varden said it would prioritize stepout drilling in that area during the remainder of the 2022 drilling season.

Kitsault Valley hosts an indicated resource of 34.7 million ounces (Moz) Ag and 166,000 ounces gold (Au), with additional inferred resources of 29.3 Moz Ag and 817,000 ounces Au within multiple outcropping deposits.

Dolly Varden is working to prepare an NI 43-101 compliant Updated Mineral Resource Estimate for the project. It will include results from drilling in Dolly Varden in 2018 and Homestake Ridge this year. It will be the basis for a Preliminary Economic Assessment (PEA) for the whole project.

A major goal of that survey will be to connect Dolly Varden and Homestake Ridge.

Ownership and Share Structure

Besides Fury, Hecla owns 10.71% or 24.7 million shares, and 2176423 Ontario Ltd. owns 11.1% or 25.6 million shares, according to Reuters.

Dolly Varden has a market cap of CA$142.98 million and 230.6 million shares outstanding, with 102.4 million shares free floating. It trades in a 52-week range of CA$0.88 and CA$0.36.

Sign up for our FREE newsletter at:


1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Dolly Varden Silver Corp. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp., a company mentioned in this article.

( Companies Mentioned: DV:TSX.V; DOLLF:OTCQX, FURY-T, HL:NYSE, )


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.