Dolly Varden and Fury Announce the Sale of Dolly Varden Common Shares to an Institutional Investor
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Dolly Varden and Fury Announce the Sale of Dolly Varden Common
Shares to an Institutional Investor
VANCOUVER, BC, October 3, 2022 - Vancouver, BC: Dolly Varden Silver Corporation (“Dolly Varden”)
(TSXV: DV) (OTCQX: DOLLF) and Fury Gold Mines Ltd (“Fury”) (TSX: FURY) (NYSE American: FURY) are
pleased to announce that Dolly Varden’s largest shareholder, Fury, with the approval and consent of
Dolly Varden, has entered into a non-brokered agreement to sell 17 million common shares at C$0.40
per share in the capital of the Dolly Varden (“Common Shares”), representing approximately 7.4% of the
outstanding Common Shares, to a well known institutional investor (the “Transaction”).
Fury approached Dolly Varden about the sale of a portion of its Common Shares as a way for Fury to
finance continued exploration at the Eau Claire and Éléonore South Joint Venture projects in Quebec
and for general working capital. Following completion of the Transaction, Fury will continue to hold
approximately 26% of the Common Shares and will be well capitalized for its upcoming exploration
activities. While Dolly Varden will receive no proceeds from the Transaction, the company is pleased to
be welcoming a new financial institutional investor.
Shawn Khunkhun, Chief Executive Officer of Dolly Varden said, “We are pleased to have been involved in
discussions regarding the Transaction and to consent to the sale by Fury of a portion of its holdings in
Dolly Varden to a new institutional investor for Dolly Varden. We believe the transaction is mutually
beneficial for Dolly Varden and Fury as it brings another experienced institutional investor to Dolly
Varden while providing Fury with funding for its Eau Claire and Éléonore South Joint Venture projects in
Quebec. We consider Fury to be our partner in the exploration and development of the Company’s
proposed Kitsault Valley Project, and we are happy to be able to support a transaction that benefits
both companies.”
Tim Clark, CEO and Director of Fury, added, “We would like to thank Dolly Varden for the support on this
mutually beneficial transaction. We view this as a prudent and strategic joint decision that will provide
capitalization for Fury’s exciting potential at its Eau Claire and Éléonore South Joint Venture projects,
and also add a significant institutional investor to Dolly Varden’s current share ownership. Going
forward, Fury is still the largest single investor in Dolly Varden at 26% and we remain confident in both
their management team and projects. We believe that success in this industry is about working well with
your partners and are thrilled about the opportunities ahead for both companies.”
Fury acquired the Common Shares of Dolly Varden in February 2022 when Dolly Varden acquired,
through the acquisition of Fury's wholly-owned subsidiary Homestake Resource Corporation, a 100%
interest in the Homestake Ridge gold-silver project (the “Homestake Ridge Project”), located adjacent
to the Dolly Varden Project in the Golden Triangle, British Columbia.
At that time, Dolly Varden and Fury also entered into an investor rights agreement (the "Investor Rights
Agreement") granting Fury certain board nomination and participation rights as well as providing for
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customary re-sale restrictions, voting and standstill conditions and a one-year hold period. Dolly Varden
has provided its consent under the Investor Rights Agreement to the Transaction.
Dolly Varden understands that Fury intends to file a Form 45-102F1 Notice of Intention to Distribute
Securities under Section 2.8 of National Instrument 45-102 – Resale of Securities later today to facilitate
the sale. Closing of the Transaction is anticipated to occur on the business day following the expiry of
the seven day notice period under NI 45-102. It is not anticipated that the purchaser will become a 10%
or greater shareholder of Dolly Varden upon completion of the Transaction.
Upon completion of the Transaction, the ownership interest of Fury in Dolly Varden will be reduced
from the current 76,504,590 Shares, representing 33% of the outstanding common shares of Dolly
Varden, to 59,504,590 Dolly Varden Shares, representing 26% of the outstanding common shares of
Dolly Varden. Fury will file an amendment to its current Early Warning Report on SEDAR to reflect its
change in ownership position. Fury will continue to have two nominees on Dolly Varden’s board of
directors under the Investor Rights Agreement following completion of the Transaction as Fury’s
ownership will remain above the 20% level. Fury will continue to hold its shares in Dolly Varden for
investment purposes and will evaluate its investment in Dolly Varden on an ongoing basis and may
increase or decrease its holdings in Dolly Varden in the future, subject to its rights and obligations under
the Investor Rights Agreement, a copy of which has been filed under Fury’s and Dolly Varden’s SEDAR
profile.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held
Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project)
located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km.
project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with
the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting
further precious metal deposits, being on the same structural and stratigraphic belts that host numerous
other, on-trend, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also
contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold
mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
About Fury Gold Mines Limited
Fury Gold Mines Limited is a well financed Canadian-focused exploration company positioned in two
prolific mining regions across the country and holds a 59.5 million common share position in Dolly
Varden Silver Corp. Led by a management team and board of directors with proven success in financing
and advancing exploration assets, Fury intends to grow its multi-million-ounce gold platform through
rigorous project evaluation and exploration excellence. Fury is committed to upholding the highest
industry standards for corporate governance, environmental stewardship, community engagement and
sustainable mining. For more information on Fury Gold Mines, visit www.furygoldmines.com.
Dolly Varden Contact Information
Shawn Khunkhun, CEO & Director, 1-604-602-1440, www.dollyvardensilver.com
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Fury Contact Information
Margaux Villalpando, Investor Relations, 1-844-601-0841, www.furygoldmines.com
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 intended closing of the Transaction, the
use of proceeds from the Transaction by Fury and Fury’s intention to file certain regulatory forms.
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 annual information form
("AIF") dated September 23, 2022 for the year ended December 31, 2021 available on SEDAR at
www.sedar.com. The risk factors identified in the AIF 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.