Dolly Varden Silver Corp (DOLLF)

[ComstockRoyalty]

DOLLF in www.JuniorGoldReport.com

Finding a great company to invest in can be a lot like fishing. You have to know exactly where to look to find a tasty fish. And if you have ever eaten smoked Dolly Varden trout which is very similar to Artic Char, you know how tasty it can be!
Amidst this comparison we are pleased to be introducing the “Dolly Varden Silver Corporation” (TSX,V: DV) to our subscribers and like the trout we feel this is quite a tasty prospect! The Dolly Varden trout is like a junior company in that it exists in a feast or famine situation.

The Dolly Varden trout actually feasts every day for a month on salmon eggs which are not actually going to turn into fish. It´s belly expands as it does so and this sustains it for the remainder of the year when food is scarce. After a period of extreme famine due to drastically poor conditions in the junior resource sector, plus dodging being eaten by a much bigger fish (more on this later), Dolly Varden Silver appears set to start feasting.

EXISTING DEPOSITS:

The four deposits in order of mineral estimate size are the Torbrit, Dolly Varden, Wolf and North Star.
Added together they are estimated by the company to contain approximately 32 million ounces of high grade silver in the indicated category and over 10 million ounces of high grade silver in the inferred category. (More details can be found at their – Website).
MARKET INTEREST:

All of these positive attributes were enough to attract the attention of leading low cost silver producer Hecla Mining (NYSE.HL).
You might say they were fishing for a nice Dolly Varden trout…. but this Dolly Varden proved to be too a slippery catch for Hecla!
In June 2016 they launched a formal takeover bid for the company at CAD .69 cents per share but Dolly Varden management wasn’t taking the hook! Since Hecla was already an investor in the company the bid was rejected on the grounds that it was an insider bid and “and therefore Hecla must obtain and disseminate to the Company’s shareholders (at its own expense) an independent formal valuation.” (from a Dolly Varden company press release.)
Hecla announced that they were disappointed but intended to maintain their share ownership in Dolly Varden and in fact took part in the private placement which they had been trying to foil by buying out the company. They did this in order to maintain their ownership percentage, which is approximately 19% of outstanding shares. This capital raise left Dolly Varden debt free with 100% ownership of their properties which is an enviable position to be in as any junior will tell you….Seems like this fish ended up turning the tables…..

--> The takeaway from all of this is one of the worlds leading silver mining companies with 4 operating mines wanted to own Dolly Varden’s properties and when they couldn’t achieve that goal they bought more shares anyways! So what do the experts know that we should know?
This points to a highly prospective junior company with multiple deposits and past production in an area known for very large and exceptionally well mineralized VMS deposits (volcanic massive sulphide)