Dolly Varden closes $33.97-million bought deal

Executive Summary

• Dolly Varden Silver Corp. has closed a $33.97 million bought-deal private placement, including the full exercise of the overallotment option.
• The financing consists of three distinct tranches: standard common shares, charity flow-through shares (CFT), and standard flow-through shares (FT), with specific pricing and use of proceeds for each.
• Net proceeds are allocated to working capital and general corporate purposes, while gross proceeds from flow-through shares are designated for exploration, resource expansion, and drilling at the Kitsault Valley project.

Key Details

• Total Gross Proceeds: $33,973,000.
• Tranche 1 (LIFE Offering - Standard Shares):
  • Quantity: 2,906,000 common shares.
  • Price: $6.50 per share.
  • Gross Proceeds: $18,889,000.
  • Basis: Prospectus-exempt under the Listed Issuer Financing Exemption (LIFE).
  • Hold Period: None (statutory hold period does not apply).
• Tranche 2 (LIFE Offering - Charity Flow-Through Shares):
  • Quantity: 750,000 CFT shares.
  • Price: $9.42 per share.
  • Gross Proceeds: $7,065,000.
  • Basis: Issued as part of a charity arrangement under the LIFE offering.
  • Hold Period: None (statutory hold period does not apply).
• Tranche 3 (Standard Flow-Through Shares):
  • Quantity: 990,000 FT shares.
  • Price: $8.10 per share.
  • Gross Proceeds: $8,019,000.
  • Basis: Prospectus exempt (other than LIFE).
  • Hold Period: Expires on Feb. 24, 2026.
• Use of Proceeds:
  • Net proceeds from common shares: Working capital and general corporate purposes.
  • Gross proceeds from CFT and FT shares: Further exploration, mineral resource expansion, and drilling at the combined Kitsault Valley project (northwestern British Columbia), plus working capital as permitted.
  • Renunciation: Flow-through mining expenditures and B.C. flow-through mining expenditures will be renounced to initial purchasers with an effective date no later than Dec. 31, 2025.
• Underwriting Fees:
  • The underwriters received a cash fee of $1,698,650, representing 5.0% of the gross proceeds.
• Underwriters:
  • Co-led by Haywood Securities Inc. and Research Capital Corp. (joint bookrunners).
  • Includes Raymond James Ltd.
  • Underwriting agreement dated Oct. 23, 2025.
• Advisors:
  • Eventus Capital Corp. acted as a special adviser to the company.