SCHEDULE: Hecla Mining Reduces Dolly Varden Silver Stake Below 5%

Hecla Canada Ltd., a subsidiary of Hecla Mining Company, has sold 2.17 million common shares of Dolly Varden Silver Corporation, reducing its beneficial ownership to 4.5%.

Summary

• Hecla Canada Ltd., a subsidiary of Hecla Mining Company, sold an aggregate of 2,170,000 common shares of Dolly Varden Silver Corporation between February 24, 2026, and February 27, 2026.
• The sales were conducted in the open market on the TSX-Venture Exchange at weighted average prices ranging from $6.4003 to $6.6000 per share.
• Following these transactions, the reporting persons (Hecla Mining Company, Hecla Canada Ltd., and Hecla Quebec Inc.) collectively beneficially own 4,079,337 common shares, representing 4.5% of Dolly Varden Silver Corporation's common shares.
• As of February 27, 2026, the reporting persons ceased to be beneficial owners of more than five percent of the Issuer's Common Shares.
• This Amendment No. 3 to Schedule 13D serves as the final amendment and constitutes an exit filing for the reporting persons.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative development for Dolly Varden Silver, as a significant institutional investor has reduced its stake, potentially signaling a lack of conviction or a strategic divestment.

Positives

• Hecla Mining Company and its subsidiaries realized liquidity from the sale of 2,170,000 shares of Dolly Varden Silver Corporation.

Negatives

• A significant institutional shareholder, Hecla Mining Company, has substantially reduced its stake in Dolly Varden Silver Corporation, potentially signaling a lack of conviction or a strategic divestment.
• The reduction of Hecla's stake below 5% could lead to negative market sentiment and increased selling pressure on Dolly Varden Silver's stock.

Risks

• The divestment by a major shareholder like Hecla Mining Company could be perceived negatively by the market, potentially impacting Dolly Varden Silver Corporation's share price.
• Reduced institutional ownership might decrease investor confidence and liquidity for Dolly Varden Silver Corporation's common shares.

Future Outlook

The filing does not provide any forward-looking statements or guidance for Dolly Varden Silver Corporation, focusing solely on the reporting persons' divestment.

Management Comments

• David C. Sienko, Sr. Vice President, General Counsel & Secretary of Hecla Mining Co/DE/, certified the information as true, complete, and correct to the best of his knowledge and belief.
• Robert D. Brown, President of Hecla Canada Ltd., and Carlos Aguiar, President of Hecla Quebec Inc., also certified the information.

Industry Context

StockSavvy.ai notes that a major mining company like Hecla reducing its stake in a junior silver explorer such as Dolly Varden Silver could signal a shift in investment strategy, a re-evaluation of the asset's potential, or a move to reallocate capital elsewhere. This action may influence market sentiment for Dolly Varden Silver and potentially other silver exploration companies, especially if interpreted as a lack of confidence from a knowledgeable industry player.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess the divestment in the context of global benchmarks.

Related Party Transactions

• Hecla Canada Ltd., a subsidiary of Hecla Mining Company (a significant shareholder of Dolly Varden Silver Corporation), divested 2,170,000 common shares of Dolly Varden Silver Corporation through open market sales.

Stakeholder Impact

• Shareholders of Dolly Varden Silver Corporation may experience increased selling pressure or a negative shift in market sentiment due to a major institutional investor's divestment.
• The reduction in institutional ownership could affect the perceived stability and future prospects of Dolly Varden Silver Corporation.

Next Steps

• This Amendment No. 3 is the final amendment to the Schedule 13D and constitutes an exit filing for the reporting persons, indicating no further reporting obligations under this specific Schedule 13D.

Key Dates

Recommendation

A significant institutional investor, Hecla Mining Company through its subsidiaries, has divested a substantial portion of its holdings in Dolly Varden Silver Corporation, reducing its stake below 5%. This action by a sophisticated investor often signals a re-evaluation of the investment's prospects or a strategic shift, which could lead to negative market sentiment and potential downward pressure on the stock price. Investors might interpret this as a lack of confidence from a knowledgeable party, warranting a 'sell' recommendation.

Keywords

Dolly Varden Silver, Hecla Mining, Share Sale, Stake Reduction, Beneficial Ownership, Schedule 13D/A, Silver Mining, TSX-Venture Exchange