District Closes Acquisition to Consolidate 100% of the Viken Energy Metals Deposit in Sweden, which contains an Historical Inferred Resource of 1.15 Billion Pounds of U3O8
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Closes Acquisition to Consolidate 100% of the Viken
Energy Metals Deposit in Sweden, which contains an Historical
Inferred Resource of 1.15 Billion Pounds of U3O8
Vancouver, B.C. January 15, 2024
January 15, 2024 – District Metals Corp . (TSX- V: DMX) (OTCQB: DMXCF) (FRA:
DFPP); (“District” or the “Company”) is pleased to announce that it has closed the acquisition
of the remaining four mineral licen ces (Figure 1) covering the Viken e nergy metals Deposit
located in Jämtland County, central Sweden , that the Company did not already control. The
Company now controls 100% of the mineral licences comprising the Viken Deposit. The Viken
Deposit is the largest undeveloped Alum Shale uranium-vanadium-potash-molybdenum-nickel-
copper-zinc deposit in Sweden, and amongst the largest deposits based on total historic mineral
resources (see below historical mineral resource disclosure ) of uranium and vanadium in the
world.
Highlights:
• The four mineral licences acquired are in good standing until late-2025, and comprise
Norra Leden, Norr Viken, Lill Viken, and Storviken, which has increased the area of
the Company’s Viken Property from 9,367 hectares (ha) to 10,812 ha.
• The Norra Leden, Norr Viken, Lill Viken mineral licenses cover the southeast and
east areas of the Viken Deposit that remain open to the southeast based on historic
drill results.
• The Storviken mineral licence covers the southwest corner of the Viken Deposit that
remains open to the south and west based on historic drill results.
• There is currently a moratorium on uranium mining and exploration that was imposed in
2018. The Swedish Government has indicated a positive stance on re -evaluating and
lifting the moratorium.
The Purchase Agreement
Pursuant to the definitive purchase agreement (the ”Purchase Agreement”), District has acquired
the Norra Leden, Norr Viken, Lill Viken and Storviken mineral licen ces from an arm’s length
vendor (the ”Vendor”) upon the following principal terms:
• CDN $50,000 cash paid to the Vendor on closing.
• CDN $50,000 cash payable to the Vendor within 30 days following the moratorium on
uranium exploration and mining in Sweden being lifted.
• 1,000,000 District shares issued to the Vendor on closing.
• 3,500,000 District shares to be issued to the Vendor within 30 days following the
moratorium on uranium exploration and mining in Sweden being lifted. These District
shares will be subject to a volunt ary lock-up pursuant to which 500,000 will be released
after four months after issuance, 500,000 will be released after six months after issuance,
1,000,000 will be released after twelve months after issuance, 1,000,000 will be released
after 18 months after issuance and 500,000 will be released twenty- four mo nths after
issuance.
• A 2% net smelter returns (“ NSR”) royalty granted to the Vendor on closing that can be
bought back in its entirety at any time for a value of CDN $8,000,000 where the first 1%
NSR royalty may be purchased for CDN $2,000,000.
Pursuant to applicable securities laws, the District s hares issued to the Vendor on closing are
subject to a four-month and one day hold period from the closing.
The Viken Energy Metals Deposit
The Viken Deposit is situated in the province of Jämtland, approximately 570 km northw est of
Stockholm, Sweden. Infrastructure is well developed in the area with daily air service, as well as
rail and truck freight services. Electrical power and modern communications are also readily
available in the area.
The Geological Survey of Sweden (SGU) carried out work on the Alum Shales from 1977 to 1978
and drilled approximately 19 holes within and in the vicinity of the Viken Deposit. In 2005,
Continental Precious Minerals Inc. (“CPM”) purchased mineral licences that covered prospective
Alum Shales where CPM drilled 26,293 m in 133 holes from 2006 to 2008 to delineate the Viken
Deposit.
CPM retained P&E Mining Consultants Inc. to carry out a m ineral resource estimate and
preliminary economic assessment in 2010 that resulted in the following historical mineral
resource estimate:
Table 1: 2010 Viken Deposit Historical Mineral Resource Estimate1
2010 Viken Deposit Historical Mineral Resource Estimate
Classification Tonnage
(k tonnes)
Grade Contained Metal
V2O5
(ppm)
U3O8
(ppm)
Mo
(ppm)
Ni
(ppm)
V2O5
(Mlbs)
U3O8
(Mlbs)
Mo
(Mlbs)
Ni
(Mlbs)
Indicated 23,610 3,130 190 280 320 162.8 9.9 14.7 16.5
Inferred 2,830,757 2,680 170 240 320 16,716.1 1,037.7 1,516.5 2,015.7
Notes:
• The mineral resource estimates contained in this table are considered to be “historical
estimates” under National Instrument 43- 101 – Standards of Disclosure for Mineral
Projects (“NI 43 -101”). A qualified person has not done sufficient work to classify the
historical estimate as a current mineral resource, and the Company is not treating these
historical estimates as current m ineral resources. The mineral resource estimate should
not be relied upon. The Company would need to conduct an exploration program,
including twinning of historical drill holes in order to verify the Viken Deposit historical
estimate as a current mineral resource.
• The categories of mineral resources were classified under the previous definition
standards and do no match the current definition standards in NI 43-101.
• Weighting of composite samples by linear Ordinary Kriging was used for the estimation
of block grades. Kriging parameters were based on the grade -element variography
derived from the mineralized shale domain. A block discretization level of 5 x 5 x 2 was
used during kriging. The mineralized shale domain was treated as a hard boundary, and
data used during estimation were limited to composite samples located within the
mineralized shale domain wireframe. Only blocks wholly or partially within the
mineralized shale domain were estimated. The mineralized shale domain was treated as
a hard boundary, and data used during estimation.
• During the first pass, four samples from each of three drill holes within 110m of the block
centroid were required. All block grades estimated during the first pass were classified as
Indicated.
• During the second pass, blocks not populated during the first pass were estimated. A
minimum of three and a maximum of six samples from one or more drillholes within 330
m of the block centroid were required. All block grades estimated during the second pass
were classified as Inferred.
• An internal break -even cut -off grade of US $7.50/tonne was used in reporting this
historical estimate.
In 2012, a bio- heap leach scenario was evaluated, and P&E Mining Consultants were retained
again to conduct an updated mineral resource estimate and preliminary economic assessment on
the Viken Deposit with the following historical estimate:
Table 2: 2014 Viken Deposit Historical Mineral Resource Estimate2
2014 Viken Deposit Historical Mineral Resource Estimate
Classification Tonnage
(k tonnes)
Grade Contained Metal
U3O8
(ppm)
Ni
(ppm)
Cu
(ppm)
Zn
(ppm)
U3O8
(Mlbs)
Ni
(Mlbs)
Cu
(Mlbs)
Zn
(Mlbs)
Indicated 43,000 190 340 100 410 18.0 32.0 10.0 38.0
Inferred 3,019,000 170 340 120 420 1,145.0 2,230.0 799.0 2,802.0
Notes:
• The mineral resource estimates contained in this table are considered to be “historical
estimates” under NI 43-101. A qualified person has not done sufficient work to classify
the historical estimate as a current mineral resource, and the Company is not treating
these historical estimates as current m ineral resources. The mineral resource estimate
should not be relied upon. The Company would need to conduct an exploration program,
including twinning of historical drill holes in order to verify the Viken Deposit historical
estimate as a current mineral resource.
• The categories of mineral resources were classified under the previous definition
standards and do no match the current definition standards in NI 43-101.
• Block grades were estimated using Ordinary Kriging of capped composite samples. Only
blocks wholly or partially within the mineralized shale domain were estimated, and
between six and fifteen samples from two or more drill holes within 660 m of the block
centroid were used for estimation. A small area in the Southern portion of the deposit with
an average drillhole spacing of approximately 120 m has been classified as Indicated.
• An internal break -even cut -off grade of US $11.00/tonne was used in reporting this
historical estimate.
The Viken Deposit is a polymetallic shale resource contained within the Cambrian Viken Shale
which regionally is referred to as the Alum Shale. The Alum Shale is enriched in metals such as
vanadium, uranium, nickel, copper, zinc, and molybdenum. It occurs over a significant area in
Sweden and is locally valued as a bituminous shale with recoverable hydrocarbons. The Alum
Shale is regionally extensive in Sweden.
The stratigraphy across the Viken mineral licence application consists of upper Middle and Upper
Cambrian age Alum Shale occurring as both in situ and fault detached blocks, with the latter
having greater potential for economic mineralization due to imbrication of mineralized blocks.
The Alum Shale is mostly exposed at surface and is underlain by Proterozoic granites and gneisses
thrust Eastward over Archean granitic basement rocks. The thickness of the Alum Shale host rock
has been tectonically thickened from 20 to 30 m by thrusting and folding during the Silurian to
approximately 180 m.
Mineralization of potential economic significance is hosted in Middle and Upper Cambrian Alum
Shale, with the Upper Cambrian age strata more enriched in vanadium and uranium than the
Middle Cambrian .3 Vanadium occurs within the lattice of a mica mineral named roscoelite.
Uranium values are predominantly associated with sub -micron-scale uraninite crystals. Nickel,
molybdenum, copper and zinc are present as sulphides.
Figure 1: Viken Mineral Licences with Outline of Viken Deposit
References
1 “Preliminary Economic Assessment on the Viken MMS Project, Sweden ” for Continental
Precious Minerals Inc. dated October 19, 2010 with an effective date of September 10, 2010..
P&E Mining Consultants Inc., EHA Engineering Ltd., and G.A. Harron & Associates Inc.
2 “Updated Technical Report, Resource Estimate and Preliminary Economic Assessment on the
Viken MMS Project, Sweden ” for Continental Precious Minerals Inc. dated February 27, 2014
with an effective date of February 6, 2014. P&E Mining Consultants Inc.
3 Andersson, A, Dahlman, B., Gee, D.G. and Snäll, S., 1985: The Scandanavian Alum Shale,
S.G.U., Ser. Ca Nr 56, 50 p.
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 is a qualified
person for the purposes of NI 43-101.
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 drilling.
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.
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 large historic polymetallic resource estimates in 2010 and 2014. The Viken
Deposit is amongst the largest deposits by total historic mineral resources of uranium and
vanadium in the world.
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.sedarplus.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”
This news release contains certain statements that may be considered “forward- looking information” with respect 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 n ot
anticipate” or “believes”, 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 other 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 Purchase
Agreement and future share issuances and cash payments ; the Company’s Swedish p olymetallic properties; the Company’s
planned 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 other factors that the Company believes are appropriate and reasonable in the circumstances, as of the date of this news
release, including, without limitation, assumptions about the reliability of historical data and the accuracy of publicly reported
information regarding past and historic mines in the Bergslagen district; and in respect of the Swedish properties; 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 activities, 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 activity, 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 following: the reliability of historic data on District’s properties; 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
including general econ omic, market and business conditions, the regulatory process, failure to ob tain 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 e xpenditures 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 interest; environmental laws and regulations and associated risks, including climate change l egislation; land
reclamation requirements; changes in government policies; volatility of the Company’s share price; the unlikelihood that
shareholders will receive dividends 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 Company’s Annual Information Form dated July 11, 2022, under the heading “Risk Factors”,
which is available at www.sedar plus.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 those disclosed in the forward-looking information or information, there may be other factors that cause 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 forward-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.