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Hecla Acquires Interest in Dolly Varden Silver Corporation  Press Release: Hecla Mining Company – 22 hours ago
COEUR D’ALENE, Idaho--(BUSINESS WIRE)--
Hecla Mining Company ( NYSE:HL) announced today that a wholly owned subsidiary of Hecla has entered into a subscription agreement to acquire 20,000,000 common shares of Dolly Varden Silver Corporation. Subject to receipt of approval by the TSX Venture Exchange, the common shares will be issued to the wholly owned subsidiary of Hecla from treasury at a price of $0.16 per common share for total gross proceeds to Dolly Varden of $3,200,000. Upon completion of the transactions contemplated by the subscription agreement, the 20,000,000 common shares will represent and Hecla will exercise control over 19.9% of the outstanding common shares of Dolly Varden. In addition, Hecla has the right to appoint one representative to the Board of Directors of Dolly Varden Silver Corporation and will be providing technical assistance to the company.
Dolly Varden is a mineral exploration company engaged in the exploration and development of silver projects in northwestern British Columbia including the past-producing Dolly Varden and Torbit mines that combined have produced over 20 million ounces of silver. In addition there have been recently defined occurrences in prospective mineral horizons and structures. Dolly Varden’s land package is in a geologic setting with world-class projects such as the past-producing Eskay Creek Mine, which is a similar deposit type to Hecla’s Greens Creek Mine.
“Hecla is pleased to be able to make a strategic investment in Dolly Varden to participate in the re-emergence of a historic silver district with outstanding exploration and development potential,” said Hecla's President and Chief Executive Officer Phillips S. Baker, Jr. “This is one of many strategic investments in junior mining companies with strong management and outstanding exploration land packages that Hecla is contemplating as we seek to expand our exposure to under-explored silver-gold mining districts in the Americas.”
The common shares will be acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Dolly Varden. It is the intention of Hecla to evaluate its investment in Dolly Varden on a continuing basis and such holdings may be increased or decreased in the future. In completing this investment Hecla is relying on Subsection 2.3(1) of Canadian National Instrument 45-106 – Prospectus and Registration Exemptions as Hecla is an accredited investor. For the purposes of Canadian National Instrument 62-103, the address of Hecla is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho, 83815, USA.
About Hecla Mining Company
Established in 1891, Hecla Mining Company is a leading low cash cost silver producer in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico.
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