Dolly Varden Buys Homestake Ridge From Fury
Bob Moriarty of 321 Gold shares his thoughts on Dolly Varden Silver Corp.’s Dec. 6 news of its planned acquisition of the Homestake Ridge gold/silver project from Fury Gold Mines Ltd.
Sometimes two plus two equals five. Or even six.
Gold and silver are dropping. Resource stocks are in the tank due to Tax Loss Silly Season and investors are throwing in the towel as they snarl on very resource chat boards about how stupid owning gold and silver stocks are.
It reminds me of late 2008 and 2015. Same sort of hopeless feeling as you know your shares will never ever climb again. Why didn’t I sell when I had the chance? Need I remind investors just what happened in 2009 and 2016? You could throw darts blindfolded in a dark room at a two-inch dartboard of stocks and have every dart hit a bull’s eye.
Stocks go up and stocks go down. Right now they are going down. Very soon they will go up and all will be right with the world.
Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) has a major silver project located in the historic Dolly Varden silver district in Northwest BC. The Dolly Varden property package consists of an 88 square km block with 44 million ounces of silver between 277 ad 300 g/t Ag. Dolly owns 100% of the project.
Dolly would be paying a total of $50 million with $5 million in cash and the remainder in shares of DV. When the transaction is complete Fury would own 36.9% of DV. They would be adding just short of a million ounces of gold to the venture and slightly over 19 million ounces of silver.
In my view, this is a case of two plus two being equal to five.
The projects adjoin and the combined package has to be very attractive to a prospective suitor. The combined land package is 163 square km and costs will be shared across the two land properties.
Fury management has their shares tied up for three years which means they have a lot of confidence in:
DV-V $.60 (Dec 07, 2021)
DOLLF-OTCBB 131 million shares
Dolly Varden Silver Website
Robert J Moriarty
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Dolly Varden Silver Corp. Dolly Varden Silver Corp. is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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