District Announces Increase to Non-Brokered Private Placement
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
District Announces Increase to Non-Brokered Private Placement
Vancouver, B.C. May 22, 2020
May 22, 2020 – District Metals Corp. (TSX -V: DMX; "District" or the “Company”) is
pleased to announce that due to strong demand, the Company has exercised its option to increase
the size of its previously announced non-brokered private placement offering to up to 20,000,000
common shares of the Company (the "Shares") at a price of CDN$0.12 per share to raise gross
proceeds of up to CDN$2,400,000 (the “Private Placement”).
Closing of the Private Placement remains subject to all necessary regulatory approvals including
acceptance from the TSX Venture Exchange. All securities 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 restr ictions as may apply under applicable
securities laws of jurisdictions outside Canada.
As described in the Company's news releases dated May 20, 2020, t he Company intends to use
the proceeds from the Private Placement to finance its initial exploration program at the Tomtebo
property and for general working capital purposes. In the event the Company does not complete
the acquisition of the Tomtebo property, the proceeds of the Private Placement will be used for
the identification, assessment and acquisition of other prospective mineral properties, and for
general corporate purposes.
As also disclosed in the Company's news release dated May 20, 2020, insiders of the Company,
including certain directors and officers, are expected to participate in the Private Placement. Such
participation is considered a related party transaction withi n the meaning of Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-
101"). The related party transaction will be exempt from minority approval, information circular
and formal valuation requirements pu rsuant 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 gross securities to be issued under
the Private Placement nor the consideration to be paid by the insiders will exceed 25% of the
Company's market capitalization.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
In connection with the Private Placement, the Company intends to pay cash finders’ fees to
eligible finders with a value equivalent to 6% of the aggregate gross proceeds raised from the sale
of the shares subscribed for by subscribers introduced to the Company by the finders.
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. Securiti es 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 prospective 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 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
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 size of the Private Placement, the closing of the Private
Placement and 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 t he 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 and development 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 availabilit y and
terms of future financi ng and the possibility of delay in exploration or development 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.