Two Canadian securities regulators are holding a joint-hearing Wednesday to consider whether Vancouver-based junior miner Dolly Varden Silver Corp. can proceed with a private placement of shares that would thwart a hostile takeover launched by Hecla Mining Co.
Idaho-based Hecla, which has launched a bid that values the Vancouver-based junior at about $12 million, has challenged the private placement as an “improper defensive tactic.”
Hecla complained about the private placement to both the British Columbia and Ontario securities commissions. Monday, the Ontario Securities Commission issued a notice saying it and the B.C. regulator will hold a “simultaneous hearing” on the issue on Wednesday.
Dolly Varden has signed an undertaking that it will not close the private placement until the B.C. Securities Commission has made a decision on Hecla’s application.
Financial Post
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