Dolly Varden Silver Corp Announces Closing of $3.2 Million Strategic Investment From Hecla Mining Company And Engagement of Haywood Securities Inc. As Financial Advisor
Dolly Varden Silver Corp announced that, further to the Company's news release of August 21, 2012, it has closed its equity financing pursuant to which a wholly-owned subsidiary of Hecla Mining Company (Hecla) acquired 20,000,000 common shares of the Company (the Dolly Shares), representing 19.9% of the outstanding Dolly Shares, at a price of $0.16 per Dolly Share for total proceeds of $3,200,000 (the Financing). Pursuant to the terms of an ancillary rights agreement, Hecla was granted various rights exercisable for so long as Hecla holds more than a 10% interest in Dolly. These rights include: a right to nominate one person to Dolly Varden's board of directors, a right to nominate one person to a technical committee, to be established to design and execute the Company's exploration programs; a right of first refusal in respect of any proposed transfer or sale by Dolly Varden of its interest in all or any part of its mining properties, including any third party offers to enter into a joint venture; and a pre-emptive right to participate in any future proposed equity offering of Dolly Varden in order to maintain Hecla's pro rata interest. Pursuant to the terms of the ancillary rights agreement, Hecla also agreed to a voting agreement whereby Hecla will vote all Dolly Shares held by it in favour of management's proposals on matters of routine business for a period of 12 months from the closing of the Financing.
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