District Closes the Acquisition of the Gruvberget Property
District Closes the Acquisition of the
Gruvberget Property
Vancouver, British Columbia--(Newsfile Corp. - October 12, 2021) -
District Metals Corp. (TSXV:
DMX) (FSE: DFPP); ("District" or the "Company")
is pleased to
announce that further to its news
release of July 28, 2021 the Company has completed its acquisition of a 100% interest in the
polymetallic Gruvberget Property from Explora Mineral AB ("
Explora
"). The acquisition of the
Gruvberget Property by the Company is hereinafter referred to as the "
Transaction
".
Garrett Ainsworth, President & CEO of District, commented: "The Gruvberget Property is an excellent
addition to our robust portfolio of prospective polymetallic properties in the prolific Bergslagen District.
The North and South zones at the Gruvberget Property comprise a one kilometer long mineralized trend
with significant historic polymetallic drill intercepts that is open in most directions and provides
compelling walk up drill targets. A detailed heliborne magnetic and electromagnetic survey (SkyTEM
312HP) is planned to commence at the Gruvberget Property before the end of the year, which will
provide us will important geophysical data to follow up via mapping, prospecting, and geochemical
sampling."
As consideration for the Transaction, the Company: (a) issued to Explora 1,000,000 common shares in
the capital of the Company (the "
Closing Shares
"); (b) paid to Explora cash consideration of
CDN$20,000;
(c) granted to Explora a 2.5% net smelter royalty on the Gruvberget Property subject to an
option to repurchase the entire 2.5% NSR royalty for CAD$8,000,000 at any time; and (d) will incur
CDN$500,000 of eligible work expenditures on the Gruvberget Property within two years from closing.
Pursuant to applicable securities laws, the Closing Shares are subject to a four-month hold period from
the closing date of the Transaction.
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 National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred
to herein other than the Gruvberget Property. Mineralization on any other properties referred to herein is
not necessarily indicative of mineralization on the Gruvberget Property.
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 advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-
central Sweden is the Company's main focus. Tomtebo 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 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.
Mineralization that is open at depth and along strike at the historic mines on the Tomtebo Property has
not been followed up on, and modern systematic exploration has never been conducted on the Tomtebo
Property.
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.com
.
On Behalf of the Board of Directors
"
Garrett Ainsworth
"
President and Chief Executive Officer
(604) 288-4430
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.
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 can 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
"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 management's expectations, estimates and projections regarding future events.
Forward-
looking statements in this news release relating to the Company include, among other things,
statements relating to the Company's plan to conduct a heliborne magnetic and electromagnetic
survey (SkyTEM 312HP) at the Gruvberget Property before the end of the year, the Company's
expectation that it will meet its obligation to incur $500,000 eligible work expenditures on the
Gruvberget Property before April 30, 2023, and the Company's interpretations and expectations about
the mineralization of the Tomtebo Mine.
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; the Company's
ability to raise sufficient capital to fund planned exploration activities, maintain corporate capacity and
satisfy the
exploration expenditure requirements required by the definitive purchase agreements
between the Company and the vendors of the Company's mineral properties (the "
Definitive
Purchase Agreements
") by the times specified therein; 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 regarding the Tomtebo Property; the
Company's ability to raise sufficient capital to finance planned exploration (including incurring
prescribed exploration expenditures required by the Definitive Purchase Agreements, failing which
the Tomtebo Property will be forfeited without any repayment of the purchase price); 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 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 Company's dependence on one material project, the Tomtebo
Property; 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
legislation; 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 gold, silver and copper; 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 epidemics or
pandemics or other health crises, including the recent outbreak of COVID-19. For additional
information regarding these risks, please see the Company's Annual Information Form, under the
heading "Risk Factors", which is available at www.sedar.com. 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 identify factors that would cause actual actions, events or results to differ materially from
those disclosed in the forward-looking statements 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 statements or 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. All scientific and
technical information contained in this news release has been prepared by or reviewed and approved
by Garrett Ainsworth, PGeo, President and CEO of the Company. Mr. Ainsworth is a qualified person
for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/99233