Dolly Varden Silver And Hecla Mining

Decision goes in favour of the target in latest regulatory challenge to a private placement as an alleged take-over defence

On July 22, 2016, following a joint hearing of the British Columbia and Ontario securities commissions, the regulators decided not to block a proposed private placement of common shares of Dolly Varden Silver Corporation (Dolly Varden). Hecla Mining Company (Hecla) had challenged the private placement as an alleged defensive tactic against Hecla's take-over bid for Dolly Varden and had applied for regulatory orders cease trading the private placement either outright or unless approval of the private placement by the Dolly Varden shareholders would be obtained. Hecla's take-over bid circular disclosed that the number of shares potentially issuable in the private placement, combined with the shares that could be issued as finder's fees, represented 43 percent of the number of Dolly Varden common shares that were outstanding on a fully diluted basis