The bid for Dolly Varden Silver Corp (CVE:DV) by Hecla Mining Company(NYSE:HL) has been terminated. In trying to explain the reasons for the termination, Hecla’s President and CEO Phillips S. Baker, Jr. said that Dolly Varden was undertaking a debt financing facility which would somewhat be expensive for U.S. silver producer to acquire the Vancouver-based explorer.

Hecla further expressed its disappointment in Dolly Varden’s planned dilutive private placement which is likely to propel the acquiring cost by more than 50% which Baker describes as a toxic pill. The results of the bid’s withdrawal were not impressive at all with the biggest hit being Hecla’s decline of 5.1%. However, all is not lost for Hecla. The company has expressed its willingness to hold onto its 15.7% interest in investment with Dolly Varden.

How much more will Dolly Varden feel the withdrawal effects?

While it may seem like Hecla is losing in the latest unfolding, Dolly Varden has not been spared either. Its Micro-cap which is worth $11 million is under siege having fallen 13% on the TSX Venture Exchange. Apparently, it was enjoying a good market match before Hecla threw in its bid which was at a 97% premium to the prevailing share price.

Nevertheless, Dolly Varden’s Director and Interim President who doubles up as the CEO has expressed optimism in the company’s ability to gain a year-long transformation to what she refers to a well-funded junior exploration company. Plans are underway to vindicate the current debt which will give it the business mandate to interact with debt-free peers.

What happens Hecla Mining?

It may be a growing gold producer, but it has to go back to the drawing. According to Ontario Securities Commission, Hecla’s bid for Dolly Varden whose market value has soared 278% was an insider bid that was un-called for. It is now up to the company to meet the expenses of carrying out an independent formal valuation for the sake of its shareholders.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.