Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) announced in a press release that it has reached an agreement with Libero Copper & Gold Corp. (LBC:TSX.V; LBCMF:OTCQB) As an assignment and assumption deal, this agreement grants Dolly Varden the opportunity to earn a 100% undivided interest in the British Columbia-based Big Bulk project, which contains a total of seven claims and 3,025 hectares of land.
The company reports that the terms of the agreement also grant it an opportunity to consolidate Big Bulk with its properties in the Texas Creek area, access to historic geologic data, and access to prior land use and exploration permits.
Shawn Khunkhun, the CEO and President of Dolly Varden, commented, "We have been continuing to seek accretive consolidation opportunities in the area, and the amalgamation of the southern portion of the Big Bulk copper-gold porphyry with Dolly Varden's portion is our latest step. In the Golden Triangle, porphyry systems can represent metallogenic feeders to high-grade vein systems, such as the KSM deposit that occurs adjacent to the Brucejack mine. Big Bulk may represent a causative mineralized porphyry to the high-grade silver and gold deposits 10 kilometers to the west at the Kitsault Valley trend."
Silver Predicted to Reach US$26
On November 12, 2023, Chen Lin of What is Chen Buying? What is Chen Selling? examined the silver market and concluded that the value of silver is likely to continue to rise.
According to Lin, green energy infrastructure has been a major driver for demand for silver: "In order to increase efficiency, 25-150% more silver is needed for the future generation of solar panels." Lin predicts that this increased demand generated by the manufacture of solar panels will continue to drive the silver deficit. Lin commented, "In order for silver to catch up with demand, many new primary silver mines need to be built, and the price of silver needs to be high for an extended period of time."
On December 8, 2023, Jordan Roy-Byrne with The Daily Gold reviewed precious metals, where they concluded that silver would likely follow a rise in gold to reach prices of over US$26 per ounce.
Potential 178% Return
Stuart McDougall with Research Capital Corp. reviewed Dolly Varden on August 14, 2023, and rated the company as a "Speculative Buy" for investors with a target share price of CA$1.35 per share, representing a potential return on investment of 93%.
The report cited the results of the drilling on Kitsol, which returned grades of as much as 496 grams per tonne of silver, and indications that this mineralization could extend south.
A Haywood Securities Report by Geordie Mark from August 14, 2023, rated the company as a "Buy" for potential investors with a share target of CA$2.00, representing a potential 178% return. The report referenced the company's drill results and its future plans for follow-up on the Moose Lamb fault.
A major catalyst for Dolly Varden Silver is its reputation for uncovering high-grade mineralization. According to Chris Temple of The National Investor, the company is "one of the elite high-grade silver and gold resources in North America." Additionally, Rick Mills of Ahead of the Herd highlighted the company's "impressive backing."
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own 0.10% of the company. According to Reuters, Director Darren P. Devine owns 0.07% of the company with 0.20 million shares, Director James Anthony Sabala owns 0.02% of the company with 0.05 million shares, and Director Robert John McLeod owns 0.01% of the company with 0.04 million shares.
Fury Gold Mines, Ltd., owns 22.04% of the company with 59.50 million shares, and represents a strategic investor, stated Reuters, as does Hecla Mining Co., which owns 10.02% of the company with 27.04 million share.
Reuters reports that institutions own approximately 22.65% of the company. According to Reuters, 2176423 Ontario, Ltd., owns 9.49% of the company with 25.63 million shares, Fidelity Management & Research Company LLC owns 6.30% of the company with 17.00 million shares, Sprott Asset Management LP owns 2.01% of the company with 5.44 million shares, ETF Managers Group, LLC, owns 1.96% of the company with 5.29 million shares, Mirae Asset Global Investments (USA) LLC owns 1.40% of the company with 3.77 million shares, US Global Investors, Inc., owns 1.02% of the company with 2.75 million shares, DWS Investment GmbH owns 0.28% of the company with 0.75 million shares, and Charteris Treasury Portfolio Managers Limited owns 0.19% of the company with 0.50 million shares.
There are 270 million shares outstanding with 157.53 million free float traded shares, reports Reuters, while the company has a market cap of CA$160 million and trades in the 52-week period between CA$0.58 and CA$1.24.
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- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp. and Libero Copper & Gold.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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