Dolly Varden Silver Corp. has entered into an option agreement with Musketeer Developments Ltd. and certain other parties to acquire 100% of the Musketeer property in northwestern British Columbia. Dolly Varden’s 100%-owned Dolly Varden silver property completely surrounds the Musketeer property. More importantly, mineral tenures of the company’s historic silver mines—Torbrit, Wolf, North Star and Dolly Varden—abut the northern and southern boundaries of the Musketeer property. Extensions of these deposits will be targeted on the Musketeer property in 2013.
The option agreement allows Dolly Varden to acquire a 100% interest in the Musketeer property for a purchase price of $1,050,000 over a period of four years, subject to a 2% net smelter royalty in favor of the optionees.
The option agreement marks Dolly Varden’s full consolidation of all the major developed silver prospects and past-producing silver mines in the Upper Kitsault valley. The company can now drill test the down-plunge extensions of the Torbrit mine, which was historically the largest silver producer in the Upper Kitsault valley.