Hecla Mining Subsidiary Acquires 19.9% of Dolly Varden Silver for $3.2M
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.
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