Dolly Varden Silver Map

Skeena Resources (SKE:TSXV) and Dolly Varden Silver (DV:TSXV) - News out this afternoon that Skeena Resources has made a proposal to acquire Dolly Varden Silver.  The offer is a share based deal for $4.2 million total with each Dolly Varden share being exchanged for 2.763 Skeena shares.

At today's closing price of 8 cents per shares this equates to a ~$0.22 cents per Dolly Varden share.

The deal is a 30% premium on the closing price of the August 27th closing price of 17 cents.

This is an interesting offer by Skeena as they hope to acquire the 31.8 million ounces of silver @321.6 grams per tonne released in a 43-101 resource estimate by Dolly Varden on August 27th.

It appears Dolly Varden is resisting a take over as Skeena has mentioned in today`s new release that have tried negotiating with Dolly Varden management to no success.

In my opinion the deal makes sense for both parties. First of all DV shareholders get access to a well capitalized company and a high grade gold project.  SKE shareholders add another high grade property this time silver also in British Columbia.

The key though to both parties is the technical expertise that Ron Netolitzky can apply to the Dolly Varden project. Dolly Varden states numerous times on it`s website that the Dolly Varden project is similar to the Snipp and Eskay Creek mines.

Guess who is credited with helping discover Snipp and Eskay?

Ron Netolitzky.

It will be interesting to see if a deal can be made.  Of note is that Mr. Netolitzky is a current advisor to Dolly Varden.

At the current offer of ~$0.22 it would be a slight premium to the last few financing's completed over the last couple years by Dolly Varden.

Dolly Varden financings

Hecla Mining will have a good say on whether this deal happens or not as they own 26,202,919 shares of Dolly Varden.

As of June 30th Dolly Varden had $667,759 in cash and $365,956 in current liabilities.

Read: Skeena Confirms Proposals to Dolly Varden Silver 

Related: Netolitzky Drills For Wealth Creation Hat-Trick In B.C.’s Golden Triangle (SKE.v)

CEO.CA is proud to announce Skeena Resources President and CEO Walter Coles will be presenting at our October 8, 2015 Subscriber Summit in Vancouver. He’ll be talking about Skeena’s ongoing summer drill program, with assay results expected August 2015 through January 2016.

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