In a news release, Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCMKTS) announced "the acquisition of surface rights and fee simple lands within the community of Alice Arm located on the Pacific Ocean in Northwest B.C., in support of exploration infrastructure."
The firm stated the Alice Arm was initially developed to support silver mining in the region in the early 1900s and that it had previously leased the property from private owners on an annual basis. The company explained that the surface rights acquired in the transaction include the land containing the exploration camp, offices, logging and sampling facilities and core storage areas. The firm noted also that one of the parcels has waterfront access, which offers potential for building deep water loading facilities.
Dolly Varden Silver's President and CEO Shawn Khunkhun commented, "Acquiring the title to these surface lands secures the future of the exploration camp and geological facilities as well as establishes the asset of having strategically located building sites for future infrastructure needs."
The company indicated that under the terms of the transaction it will pay a total of CA$300,000 in consideration, which will consist of one cash payment in the amount of CA$150,000 and an additional payment of CA$150,000 in fully paid common shares of the company. The firm noted that shares will be issued based upon the shares 10-day average closing price on the TSX Venture Exchange (TSX.V) immediately preceding the issue date. Dolly Varden added that the transaction remains subject to approval by the TSX Venture Exchange.
The company stated that although it holds the title to the underlying mineral leases on the larger lots within the land package, it is not presently planning to carry out exploration there.
The company noted that it believes that the Dolly Varden silver property is highly prospective for hosting high-grade precious metal deposits as it is situated near other high-grade deposits including Barrick Gold Corp.'s (ABX:TSX GOLD:NYSE) Eskay Creek and Pretium Resources Inc.'s (PVG:TSX; PVG:NYSE) Brucejack projects that share the same structural and stratigraphic characteristics.
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