Dolly Varden Silver Closes Private Placement

Vancouver, British Columbia (FSCwire) - Dolly Varden Silver Corp. (TSX.V: DV | U.S.: DOLLF) (the “Company” or “Dolly Varden”) has completed its non-brokered private placement originally announced on July 5, 2016 (the “Offering”). The Company raised gross proceeds of $7,195,591.38 through the sale of 9,115,861 common shares of the Company at a price of $0.62 per share (“Common Shares”), 2,142,857 “flow-through shares” of the Company at a price of $0.70 per share and 101,762 common share purchase warrants (“Warrants”) issued to Hecla Canada Ltd. (“Hecla”) at a price of $0.43 per Warrant (described below). Closing of the Offering was delayed pending simultaneous hearings of the British Columbia Securities Commission and the Ontario Securities Commission on whether to cease trade the Offering.  On July 22, 2016, both commissions ruled in favour of allowing the Offering to continue and the financing was resumed on July 25, 2016.

The net proceeds of the Offering will be used to repay principal, interest and fees on the $2,500,000 loan from Sprott Private Resource Lending (M), L.P., Resource Income Partners Limited Partnership and The K2 Principal Fund L.P. (see Company news releases dated June 13, 2016 and July 4, 2016), accomplishing the Company’s goal of becoming debt free. The majority of the remaining proceeds are planned to be used for exploration of the Dolly Varden silver property in northwestern British Columbia, where a number of prospective mineral exploration and resource expansion targets were identified during the 2015 field season. Thereafter, proceeds will be used for working capital purposes. 

Hecla has elected to maintain its pro rata interest in the Company, a right granted in an ancillary rights agreement, and subscribed for 1,857,796 Common Shares and 101,762 Warrants (both of which are included in the above totals). Each Warrant purchased by Hecla will entitle Hecla to purchase one Common Share at a price of $0.70 per Common Share and will be exercisable for a period of 24 months from the date of issuance.

In connection with the Offering and a finder’s fee agreement with Eventus Capital Corp. (the “Finder”) dated July 5, 2015, the Company will pay a finder’s fee in respect of those purchasers introduced to Dolly Varden by the Finder.  The finder’s fee will consist of 558,606 Common Shares and 541,205 common share purchase warrants exercisable at a price of $0.70 per Common Share for a period of 24 months from the date of the closing of the Offering.

All of the securities issued in the Offering are subject to a 4 month hold period expiring on November 27, 2016.

About Dolly Varden - Dolly Varden Silver Corp. is a mineral exploration company focused on the exploration of the Dolly Varden silver property located in northwestern British Columbia, Canada. The entire Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Company’s common shares are listed and traded on the TSX Venture Exchange under the symbol DV and on the OTCBB system under the symbol DOLLF.

This release may contain forward-looking statements or information. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relate to, among other things, the terms of the Offering, the use of proceeds of the Offering and the continued exploration and valuation of the Dolly Varden silver property. These forward-looking statements are based on management’s current expectations and beliefs, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com and on the Company’s website at www.dollyvardensilver.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

This release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States.  The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to available exemptions therefrom.

Contact Information:
Dolly Varden Silver Corp.
Rosie Moore, Interim CEO and President

1-604-925-5881

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