District Announces Closing of Acquisition of Tomtebo Project
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
District Announces Closing of Acquisition of Tomtebo Project
Vancouver, B.C.
June 30, 2020– District Metals Corp. (TSX-V : DMX; "District" or the “Company”) is
pleased to announce that further to its news release of February 28, 2020 and May 8, 2020, it has
completed its acquisition of a 100% ownership of the Tomtebo and Trollberget properties
(together, the "Properties") from Viad Royalties AB (the " Seller"), a wholly-owned subsidiary
of EMX Royalty Corp. (TSX-V:EMX) (" EMX"). The acquisition of the Properties by the
Company is hereinafter referred to as the "Transaction".
Garrett Ainsworth, President & CE O of District, commented: “It has been a pleasure working
with EMX, from the due diligence phase through to the closing of the Tomtebo and Trollberget
transaction. We are pleased to have EMX as a la rge shareholder, with a 9.9% ownership in the
Company. District is well underway with our exploration plans for Tomtebo, located in the
prolific Bergslagen Mining District of south-central Sweden, with a strong partner that has been
operating in Scandinavia since 2012.”
As consideration for the Transaction, the Company (a) issued to EMX 5,882,830 common shares
in the capital of the Company (the " Closing Shares"); (b) paid to EMX cash consideration of
$35,000; (c) granted to EMX a 2.5% net smelter royalty on each of the Properties as described in
the Company's news release dated February 28 , 2020; (d) entered into a shareholder rights
agreement with EMX pursuant to which, among ot her things, EMX has been granted a top-up
right (the " Top-Up Right ") to maintain its proportionate sh areholding in the Company at no
additional consideration until the earlier of the five year anniversary of the closing of the
Transaction and completion of a financing raising gross proc eeds of at least $600,000, up to a
maximum of 3,000,000 common shares in the capital of the Company.
Pursuant to an amended and restated purchase agreement (the " Amended Purchase
Agreement") among the Company, Distri ct Metals AB (the “ Buyer”), a wholly-owned
subsidiary of the Company, the Seller and EMX, th e parties agreed that due to the requests for
transfer of the mineral licences to the Buyer being delayed as a result of the global Covid-19
pandemic, the mineral licenses will be held in trust for the Company pending approval, during
which time the Company will have unrestricted access to the Properties for exploration.
Also in connection with the closing of the Tr ansaction, pursuant to th e previously announced
services agreement between the Company, Vector Geological Solutions Inc., (the “Consultant”)
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
and Daniel MacNeil, as principal of the Consultant, the Company issued 466,390 common shares
in the capital of the Company to the Consultant (the " Finder Shares") and agreed to issue up to
an additional 33,610 shares on the issuance of at least 448,134 common shares pursuant to the
Top-Up Right, on or before 12 months following the closing date. The C onsultant is at arm's
length to the Company.
Pursuant to applicable securities laws, the Closing Shares and the Finder Shares are subject to a
four-month hold period from the closing date of the Transaction.
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 ou t, explore, and develo p prospective mineral
properties through a discip lined science-based approach to cr eate shareholder value and benefit
other stakeholders.
The advanced exploration stage To mtebo Property is located in the Bergslagen Mining District
of south-central Sweden is the Company’s main focus. To mtebo comprises 5,144 ha, 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 polymetal lic mines and numerous
polymetallic showings are located on the Tomt ebo Property along an appr oximate 17 km trend
that exhibits similar geology, st ructure, alteration and VMS/SedEx style mineralization as other
significant mines within the distri ct. Mineralization that is open at depth and along strike at the
historic mines on the To mtebo Property has no t been followed up on, a nd modern systematic
exploration has never been conducted on the Property.
On Behalf of the Board of Directors
“Garrett Ainsworth”
President and Chief Executive Officer
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 “m ay”, “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 Top-Up Right and the Company's primary focus 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 fluctuations in commodity prices and currency e xchange 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 the issuance of required permits; the need to obtain additional financing to meet the minimum
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
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 or forfeiture of the Properties if such
financing is not secured in a timely fashion or at all. 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 secu rities laws. Investors should not place undue reliance on
forward-looking statements.