District Announces Closing of $2.4 Million Non-Brokered Private Placement, Grant of Stock Options and Change of Corporate Secretary
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
District Announces Closing of $2.4 Million Non-Brokered Private
Placement, Grant of Stock Options and Change of Corporate
Secretary
Vancouver, B.C.
June 8, 2020– District Metals Corp. (TSX-V: DMX; "District" or the “Company”) is pleased
to announce that further to its news release of May 20, 2020 and May 22, 2020, it has closed a
non-brokered private placement offering of 20,000,000 common shares of the Company (the
"Shares") at a price of CDN$0.12 per share for aggregate gross proceeds of CDN$2.4 million
(the “Private Placement”).
The Private Placement included an affiliate of the Sprott Group who subscribed for 6 .0 million
Shares, representing 11.31% of the Com pany's outstanding common shares after completion of
the Private Placement.
Garrett Ainsworth, President & CEO of District, commented: “I would like to welcome several
new and prominent investors into District Metals Corp. through our recently completed and
oversubscribed financing, and also thank existing shareholders for their continued support. We
are now well-positioned to execute on our exploration plans to prove up the prospective
Polymetallic Tomtebo Property located in south-central Sweden.”
As previously disclosed, the Company intends to use the net proceeds from the Private Placement
to finance its initial exploration program at the Tomtebo property and for general working capital
purposes or, in the event the Company does not complete the acquisition of the Tomtebo property,
for the identification, assessment and acquisition of other prospective mineral properties, and for
general corporate purposes.
Certain insiders of the Company subscribed, directly or indirectly for an aggregate of 189,000
Shares pursuant to the Private Placement . Such participation is considered a "related party
transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The
related party transaction will be exempt from minorit y approval and formal valuation
requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101,
as neither the fair market value of the Shares purchased by the insiders n or the consideration to
be paid by the insiders exceeds 25% of the Company's market capitalization.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
The Company did not file a material change report more than 21 days before the expected closing
of the Private Placement as the details of the Private Placement and the participation therein by
related parties of the Com pany were not settled until shortly prior to closing and the Company
wished to close on an expedited basis for sound business reasons.
All Shares issued in connection with the Private Placement will be subject to a four -month hold
period from the closing date under applicable Canadian securities laws, in addition to such other
restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
In connection with the Private Placement, the Company paid a total of $60,036 in finders fees
(representing 6% of the aggregate gross procee ds from the sale of S hares subscribed for by
persons introduced to the Company by such finders).
The Company has also granted a total of 1,865,000 stock options to directors, officers, employees
and consultants of the Company, in accordance with the provisions of its stock option plan. Each
stock option is exercisable at $0.21 per common share (the closing price of the Company’s
common shares on June 2, 2020, the grant date). All stock options have a term of five years and
vest on the grant date.
Further, the Company announces that Emily Davis has resigned as Corporate Secretary of the
Company and Maria Wells has been appointed to fill that role.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will not be registered under the
United States Securities Act of 1933 , as amended (the "U.S. Securities Act ") or any state
securities laws and may not be offered or sold within the United States or to, or for the account
or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state
securities laws, unless an exemption from such registration is available.
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 prospect ive mineral
properties through a disciplined science -based approach to create shareholder value and benefit
other stakeholders. The Company has entered into a definitive agreement to acquire a 100%
interest in the Tomtebo and Trollberget properties in the prolific Bergslagen District of Sweden.
Upon completion of the proposed transaction, the Company's primary focus will be on the
advanced exploration stage Tomtebo property.
For more information, please contact Garrett Ainsworth, President and CEO of the Company.
On behalf of District Metals Corp.
Garrett Ainsworth, President and CEO
District Metals Corp.
604-628-2669
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
Neither 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.
All statements, trend analysis and other information contained in this news release relative to markets about
anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”
and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. All statements, other than statements of historical fact, included herein,
including, without limitation, statements relating to the anticipated use of proceeds of the Private Placement and the
completion of the acquisition of the Tomtebo property are forward-looking statements. Forward-looking information
is subject to business and economic risks and uncertainties and other factors that could cause actual results of
operations to differ materially from those contained in the forward-looking information. Important factors that could
cause actual results to differ materially from District's expectations include failure to complete the acquisition of the
Tomtebo property, fluctuations in commodity prices and currency exchange rates; uncertainties surrounding the
results of planned exploration activities ; uncertainties relating to interpretation of drill results and the geology,
continuity and grade of mineral deposits; the need for cooperation of government agencies and native groups in the
exploration of properties and th e issuance of required permits; the need to obtain additional financing to meet the
minimum expenditure requirements to maintain an interest in the Tomtebo property; uncertainty as to the availability
and terms of future financing; and the possibility of delay in exploration programs. Forward-looking statements are
based on estimates and opinions of management at the date the statements are made. District does not undertake any
obligation to update forward -looking statements except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements.