District Closes Acquisition of the 2.0% NSR Royalty on the Viken Energy Metals Deposit in Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288 -4430
District Closes Acquisition of the 2.0% NSR Royalty on the
Viken Energy Metals Deposit in Sweden
Vancouver, B.C. February 3, 202 5
February 3 , 202 5 – District Metals Corp. (TSX -V: DMX) (Nasdaq First North:
DMXSE SDB) (OTCQB: DMXCF) (FRA: DFPP); ( “District” or the “Company”) is
pleased to announce that it has closed its previously announced acquisition of the 2.0% net
smelter returns (“ NSR”) royalty over the remaining four mineral licences (Norra Leden,
Norr Viken, Lill Viken, and Storviken) covering the Viken Deposit (Figure 1) located in
Jämtland County, central Sweden (see news release January 8, 2025). As a result, District’s
100% owned Viken Deposit is now completely free of any NSR royalty .
Pursuant to the definitive royalty purchase agreement , District acquired the 2.0% NSR
from an arm’s length vendor for a purchase price of 500,000 common shares of District
(the “Consideration Shares”). The Consideration Shares are subject to a hold period of 4
months and one day, from the date of issue.
Garrett Ainsworth, CEO of District, commented: “In January 2024, District completed the
full consolidation of the Viken Energy Metals Deposit and has now closed the acquisition
to eliminate all NSR royalties tied to the deposit.
The Viken Deposit is hosted within Alum Shales, which are rich in critical and important
energy metals crucial for the green energy transition, such as uranium, vanadium, nickel,
molybdenum, copper, zinc, and rare earth elements. Moreover, the Alum Shales hold the
potential for significant production of sulphate of potash, a valuable resource that would
greatly benefit the agriculture -driven economy of Jämtland County, Sweden, and Europe.
This acquisition comes after the Swedish Government’s release of their inquiry report on
lifting the uranium moratorium, along with a supportive press release, which we have
commented on here.”
Technical Information
All scientific and technical information in this news release has been prepared by, or
approved by Garrett Ainsworth, PGeo, President and CEO of the Company. Mr. Ainsworth
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288 -4430
is a qualified person for the purposes of National Instrument 43 -101 – Standards of
Disclosure for Mineral Projects .
Drilling data disclosed in this news release relates to historical drilling results. District has
not undertaken any independent investigation of the sampling, nor has it independently
analyzed the results of the historical exploration work in order to verify the results. District
considers these historical drill results relevant as the Company is using this data as a guide
to plan exploration programs. The Company’s current and future exploration work includes
verification of the historical data through dr illing.
About District Metals Corp.
District Metals Corp. is led by industry professionals with a track record of success in the
mining industry. The Company’s mandate is to seek out, explore, and develop prospective
mineral properties through a disciplined science -based approach to create s hareholder
value and benefit other stakeholders.
District is a polymetallic exploration and development company focused on the Viken and
Tomtebo Properties in Sweden. The Viken Property covers 100% of the uranium-vanadium
Viken Deposit, which is an asset with substantial exploration and development
expenditures that resulted in the definition of historic polymetallic resource estimates in
2010 and 2014.
The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining
District of south -central Sweden and is situated between the historic Falun Mine and
Boliden’s Garpenberg Mine that are located 25 km to the northwest and southeast,
respectively. Two historic polymetallic mines and numerous polymetallic showings are
located on the Tomtebo Property along an approximate 17 km trend that exhibits similar
geology, structure, alteration and VMS/SedEx style mineralization as other significant
mines within the district.
For further information on the Tomtebo Property, please see the technical report entitled
“NI 43 -101 Update Technical Report on the Tomtebo Project, Bergslagen Region of
Sweden” dated effective October 15, 2020 and amended and restated on February 26, 2021,
which is available on SEDAR+ at www.sedar plus.ca.
On Behalf of the Board of Directors
“Garrett Ainsworth ”
President and Chief Executive Officer
(604) 288 -4430
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statement Regarding “Forward -Looking Information ”
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288 -4430
This news release contains certain statements that may be considered “forward -looking information” with respe ct to
the Company within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward -
looking information ca n be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects ” or
“does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”,
“anticipates” or “does not anticipate” or “bel ieves”, or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved” and any
similar expressions. In addition, any statements that refer to expectations, predictions, indications, projections or othe r
characterizations of future events or circumstances contain forward -looking information. Statements containing
forward -looking information are not historical facts but instead represent manage ment’s expectations, estimates and
projections regarding future events. Forward -looking information in this news release relating to the Company include ,
among other things, statements relating to the Company’s Swedish polymetallic properties; the Company’s planne d
exploration activities, including its drill target strategy and next steps for the Swedish properties; and the Company’s
interpretations and expectations about the results on the Swedish properties.
These statements and other forward -looking information are based on opinions, assumptions and estimates made by
the Company in light of its experience and perception of historical trends, current conditions and expected future
developments, as well as othe r factors that the Company believes are appropriate and reasonable in the circumstance s ,
as of the date of this news release, including, without limitation, assumptions about the reliability of historical data and
the accuracy of publicly reported informat ion regarding past and historic mines in the Bergslagen district; and in respe ct
of the Swedish propert ies; that the Swedish government will eventually lift or amend its moratorium on uranium
exploration and mining in Sweden; the Company’s ability to raise sufficient capital to fund planned exploration activitie s ,
maintain corporate capacity; and stability in financial and capital markets .
Forward -looking information is necessarily based on a number of opinions, assumptions and estimates that, while
considered reasonable by the Company as of the date such statements are made, are subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause the actual results, level of a ctivity, performance or
achievements to be materially different from those expressed or implied by such forward -looking information, including
but not limited to risks associated with the foll owing: the reliability of historic data on District’s propert ies; the
Company’s ability to raise sufficient capital to finance planned exploration ; that the Swedish government maintains its
moratorium on uranium exploration and mining in Sweden for the foreseeable future ; the Company’s limited operating
history; the Company’s negative operating cash flow and dependence on third -party financing; the uncertainty of
additional funding; the uncertainties associated with early stage exploration activities includ ing general economic,
market and business conditions, the regulatory process, failure to obtain necessary permits and approvals, technical
issues, potential delays, unexpected events and management’s capacity to execute and implement its future plans; the
Company’s ability to identify any mineral resources and mineral reserves; the substantial expenditures required to
establish mineral reserves through drilling and the estimation of mineral reserves or mineral resources; the uncertainty
of estimates used to calculated mineralization figures; changes in governmental regulations; compliance with applicable
laws and regulations; competition for future resource acquisitions and skilled industry personnel; reliance on key
personnel; title matters; conflicts of in terest; environmental laws and regulations and associated risks, including climate
change legislation; land reclamation requirements; changes in government policies; volatility of the Company’s share
price; the unlikelihood that shareholders will receive d ividends from the Company; potential future acquisitions and joint
ventures; infrastructure risks; fluctuations in demand for, and prices of metals; fluctuations in foreign currency exchange
rates; legal proceedings and the enforceability of judgments; going concern risk; risks related to the Company’s
information technology systems and cyber -security risks; and risk related to the outbreak of epidem ics or pandemics or
other health crises. For additional information regarding these risks, please see the Com pany’s Annual Information Form
dated July 11, 2022 for the fiscal year ended June 30, 2021 , under the heading “Risk Factors”, which is available at
www.sedarplus.ca. These factors and assumptions are not intended to represent a complete list of the factors and
assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully.
Although the Company has attempted to identi fy factors that would cause actual actions, events or results to differ
materially from thos e disclosed in the forward-looking information or information, there may be other factors that caus e
actions, events or results not to be as anticipated, estimated or intended. Also, many of such factors are beyond the
control of the Company. Accordingly, readers should not place undue reliance on for ward-looking information . The
forward -looking information is made as of the date of this news release, and the Company assumes no obligation to
publicly update or revise such forward -looking information, except as required by applicable securities laws.