08:47 AM EDT, 07/28/2020 (MT Newswires) -- Dolly Varden Silver Corp. (DV.V) on Tuesday said that due to strong investor demand, it has upsized a best-efforts private placement of its units for gross proceeds of up to $10 million. The company gained 4.35% yesterday, touching 52-week highs.

The company plans to use the proceeds from the private placement to advance its namesake project in British Columbia, as well as for working capital and general corporate purposes.

Each unit will be composed of one Dolly Varden common share and one-half of one common share purchase warrant, which will be exercisable at $1.10 per warrant share for a 24-month period following the offering closing. Closing is expected Aug. 17.

Strategic investor Eric Sprott is expected to subscribe into the offering to maintain his 19.9% stake in the company. Also, under an ancillary rights agreement between Hecla Canada Ltd. and the company, Hecla will be entitled to acquire units at $0.71 per unit to maintain its pro rata equity interest in Dolly Varden.

Dolly Varden also previously said its new geological team has uncovered a number of high-grade silver targets that warrants a drill program.

Price: 0.9600, Change: +0.0400, Percent Change: +4.35