Fury Completes Sale of Dolly Varden Shares

Rhea-AI Summary

Fury Gold Mines Limited completes the sale of 5,450,000 common shares of Dolly Varden Silver Corp. to institutional investors for C$4,005,750, providing funds for exploration and working capital. Fury now holds approximately 19.99% of Dolly Varden's common shares, well-positioned for future activities.

Market Research Analyst

The recent transaction involving Fury Gold Mines Limited's sale of Dolly Varden Silver Corp. shares is significant for several reasons. Firstly, the liquidity infusion from this sale provides Fury with additional capital to further its exploration projects, potentially increasing the company's asset value over time. The choice of institutional investors as buyers indicates a level of confidence in Fury's long-term strategy and the quality of the assets being explored.

From a market perspective, the sale modifies Fury's stake in Dolly Varden, which could have implications for shareholder dynamics and voting power. The slight reduction in ownership post the anticipated closing of Dolly Varden's bought deal offering suggests a strategic decision to diversify holdings while maintaining significant influence. Investors should monitor Fury's ongoing evaluation of its investment, as future transactions could signal changes in the company's strategy or financial health.

Financial Analyst

Analyzing the financial implications of Fury's sale, the gross proceeds of C$4,005,750 are a noteworthy injection of capital. However, the price per share of C$0.735 should be compared against the current market valuation of Dolly Varden's stock to assess the deal's attractiveness. If the shares were sold at a premium or discount, it could reflect on Fury's negotiation capability and the immediate impact on its cash reserves.

For investors, the use of proceeds for exploration and working capital is a double-edged sword. While it could lead to discovery of valuable resources, exploration is inherently risky and capital-intensive. The success of these projects will be a critical factor in Fury's future revenue and growth potential. Investors should consider the company's track record in exploration and resource management when evaluating this investment.

Mining Sector Analyst

The sale's impact on Fury's operational strategy is clear; it underscores the company's commitment to its Eau Claire and Éléonore South projects. These projects are located in Quebec, a region known for its mineral wealth and supportive mining regulatory environment. The strategic allocation of funds towards exploration rather than holding a larger stake in Dolly Varden suggests a focus on core competencies and resource development.

However, maintaining a 19.99% stake pre-offering and approximately 18.99% post-offering in Dolly Varden indicates Fury's ongoing interest in Dolly's performance. This stake is substantial enough to be influential, possibly providing Fury with strategic leverage in Dolly Varden's operational decisions. Investors should be aware of the symbiotic relationship between the two companies and how it might affect Fury's market position and risk profile.

VANCOUVER, BC / ACCESSWIRE / March 14, 2024 / Fury Gold Mines Limited (TSX:FURY)(NYSE American:FURY) ("Fury" or the "Company") is pleased to announce that it has completed the previously announced sale of 5,450,000 common shares of Dolly Varden Silver Corp. (the "Dolly Shares") (see news release dated March 6, 2024). The shares were sold at a price of C$0.735 per Dolly Share to a group of institutional investors arranged by the Company's agent, Haywood Securities Inc., for total gross proceeds of C$4,005,750.

The net proceeds of the sale will be used for continued exploration at the Company's Eau Claire and Éléonore South projects in Quebec and for general working capital. Following today's announcement, Fury now holds approximately 19.99% of the common shares of Dolly Varden and is well capitalized for its upcoming exploration activities. Following the closing of Dolly Varden's bought deal offering, which is anticipated to close on March 21, 2024, Fury will hold approximately 18.99% of its common shares outstanding.

Fury continues to hold 54,054,590 common shares of Dolly Varden after the sale. Fury will file an amendment to its current Early Warning Report on SEDAR+ to reflect its change in ownership position. Fury continues to hold its shares in Dolly Varden for investment purposes and will evaluate its investment on an ongoing basis and may increase or decrease its holdings in the future, subject to its rights and obligations under the Investor Rights Agreement dated February 25, 2022, between Fury and Dolly Varden, a copy of which has been filed under Fury's SEDAR+ profile.

About Fury Gold Mines Limited

Fury Gold Mines Limited is a well-financed Canadian-focused exploration company positioned in two prolific mining regions across Canada and currently holds a 54 million common share position in Dolly Varden Silver Corp (19.99% ownership). Led by a management team and board of directors with proven success in financing and advancing exploration assets, Fury intends to grow its multi-million-ounce gold platform through rigorous project evaluation and exploration excellence. Fury is committed to upholding the highest industry standards for corporate governance, environmental stewardship, community engagement and sustainable mining. For more information on Fury Gold Mines, visit www.furygoldmines.com.

Neither the TSX nor its Regulations Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.

For further information on Fury Gold Mines Limited, please contact:
Margaux Villalpando, Investor Relations
Tel: (844) 601-0841
Email: info@furygoldmines.com
Website: www.furygoldmines.com

Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. Such statements include the Company's proposed use of proceeds from the share sale and its future holdings of Dolly Varden shares.

Although Fury has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place heavy reliance on forward-looking information. Fury does not undertake to update any forward-looking statements except as required by applicable securities laws.

SOURCE: Fury Gold Mines Limited

View the original press release on accesswire.com

What was the total gross proceeds from the sale of Dolly Varden Silver Corp. shares?

The total gross proceeds from the sale of 5,450,000 common shares of Dolly Varden Silver Corp. were C$4,005,750.

How will Fury Gold Mines Limited utilize the net proceeds from the sale?

The net proceeds from the sale will be used for continued exploration at the Company's Eau Claire and Éléonore South projects in Quebec and for general working capital.

What percentage of common shares of Dolly Varden does Fury Gold Mines Limited now hold?

Fury Gold Mines Limited now holds approximately 19.99% of the common shares of Dolly Varden after the sale.

What is the current total number of common shares of Dolly Varden held by Fury Gold Mines Limited?

Fury Gold Mines Limited currently holds 54,054,590 common shares of Dolly Varden after the sale.

Will Fury Gold Mines Limited adjust its ownership position in Dolly Varden in the future?

Fury Gold Mines Limited will evaluate its investment in Dolly Varden on an ongoing basis and may increase or decrease its holdings in the future, subject to its rights and obligations under the Investor Rights Agreement.