The term “strategic investor” means different things in different sectors. If you’re developing aviation software, Boeing would count as strategic investor. If you’re running trials on a drug to cure pancreatic cancer, Pfizer would count as a strategic investor.
For a precious metals company like Dolly Varden Silver, a strategic investor should have geological DNA and a good track record in the resource sector.
It’s not easy for a retail investor – busy with a day job, a family, the challenges of every day life – to sit down in the evening and peruse a drill log. Shareholders in resource companies should be asking themselves: “Who else owns this stock?” “Do they know more about the mining business than me?”
The DV shareholder base includes Eric Sprott, Hecla Mining, Fury Gold, US Global Investors, Fidelity and Delbrook Capital. In fact, 48% of DV stock is owned by Institutional investors. These institutions may have different reasons for owning the stock: the location, the geology, the share structure, the focus on silver. But they two things in common 1. They are veteran mining investors, and 2. They believe in the Dolly Varden project.
In some cases, layered on top of other criteria, there is a loyalty factor.
One of our institutional shareholders runs a $2 billion fund. When I first met him a decade ago, it was a $10 million fund. So, this money manager is demonstratively good at his job. Over the years, he has invested in numerous projects I’ve been involved in, which have had varying degrees of success. Some projects didn’t work out operationally, or as investments.
I approached this fund manager in December, 2022 to see if he wanted to participate in an $18 million DV financing. At that time, silver was trading at about $19/ounce. The general sentiment was a gloomy. He told me: “Shawn, you work hard, you’re honest, you communicate well, you put the money in the ground. I’m in.” He took down a third of the deal, we ended up closing $22 million.
I’m lucky to have a few of those people in my life. It makes a difference.
I would like to talk about one other strategic investor that has particular significance to us. On November 2, 2023 we closed a deal where Hecla Canada invested $10 million in DV Silver, raising its stake from 10.6% to 15.7%.
Hecla Mining has a market cap of USD $3.47 billion (June, 2024) and trades on the New York Stock Exchange (NYSE). It is on track to produce 17 million ounces of silver in 2024.
Hecla has demonstrated it is a sticky shareholder. The public position of the company is that they are looking to expand their North American silver portfolio.
Our land package is surrounded by Hecla property. One of our technical advisors, Kurt Allen, is the VP of Exploration for Hecla.
I don’t know what Hecla is thinking now, or what actions the international silver producer will take in the future. But I do believe Hecla’s increased ownership stake is a vote of confidence in the Dolly Varden project. Hecla is one our important strategic investors.
In the next message, I will talk about community relations, which can make or break a resource project.
Shawn Khunkhun
CEO, President & Director of Dolly Varden Silver
Forward Looking Statements
This release may contain forward-looking statements or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including, without limitation, statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “potential”, and similar expressions. 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 in this release relates to, among other things, the 2022 drill program at the Kitsault Valley Project, the results of previous field work and programs and the continued operations of the current exploration program, interpretation of the nature of the mineralization at the project and that that the mineralization on the project is similar to Eskay and Brucejack, results of the mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization and our beliefs about the unexplored portion of the property.
These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the company, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, 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”) and management information circular dated January 21, 2022 (the “Circular”), both of which are available on SEDAR at www.sedar.com. The risk factors identified in the MD&A and the Circular are not intended to represent a complete list of factors that could affect the Company.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
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