District Executes Agreement to Sell 80% of the Bakar Property on Northern Vancouver Island, British Columbia
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
District Executes Agreement to Sell 80% of the Bakar Property on
Northern Vancouver Island, British Columbia
Vancouver, B.C. August 18, 2020
August 18, 2020 – District Metals Corp. (TSX-V: DMX) (FRA: DFPP); ("District" or the
“Company”) is pleased to announce the execution of a definitive purchase agreement (the
“Agreement”) dated August 17, 2020 for District’s high grade copper -silver Bakar Property
(“Bakar” or the “Property” ) located on northern Vancouver Island in British Columbia with
Sherpa II Holdings Corp. (“Sherpa II”) (TSX-V: SHRP.P).
Transaction Highlights
Under the Agreement Sherpa II will acquire an 8 0% interest in the Bakar Property by cash
payment, the issuance of shares to District, and work expenditures, as described below. The cash
payment and common shares of Sherpa II will be transferred to District upon closing of the
transaction on or before September 17, 2020, and the work expenditures are scheduled to be
completed within six months from the closing.
• $50,000 cash payment.
• 1,000,000 common shares of Sherpa II.
• $200,000 in work expenditures.
• Carry over of the 2.0% NSR from the royalty agreement dated July 12, 2019 between
District and Longford Capital Corp . on one of the eight mineral claims that comprises
Bakar, which covers 1, 352 hectares (ha) out of the 15,687 ha Property. The 2.0% NSR
may be repurchased entirely for $6.5M.
Overview of the Bakar Property
The Bakar Property comprises 15,687 ha, and is located on northern Vancouver Island with
excellent access and infrastructure. The area covered by the Property is within a copper -rich
geological domain that hosts the past producing Island Copper Mine, the Hushamu Deposit, and
the Red Dog Deposit. The Island Copper Mine was operated by BHP from 1971 to 1995, and
produced 345 million metric tonnes of ore with average grades of 0.41% copper, 0.017%
molybdenum, 0.19 g/t gold and 1.4 g/t silver1.
The geological setting (i.e. within the sub-aerial Karmutsen volcanic and sedimentary sequence)
and high grade copper-silver mineralogy assemblages and styles observed at Bakar make the
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
primary exploration targets copper-silver redbed, copper-molybdenum-gold-silver porphyry, and
polymetallic skarn deposits.
Seven outcrop chip samples from December 2018 recovered at the Millington showing on Bakar
returned high grade copper (0.01 to 38.7% Cu) and silver (<0.10 to 221.0 g/t Ag) values
confirming the presence of redbed-type mineralization. Additionally, disseminated, stringer, and
fracture-hosted sulphide mineralization (chalcocite, bornite, and chalcopyrite) was observed to
emanate from high grade copper -silver lenses and veins hosted within a stratabound volcanic
sequence with an apparent thickness of over 30 m and a northwest-southeast strike length of over
200 m (see news release dated May 2, 2019).
A helicopter-borne VTEM (versatile time-domain electromagnetic) survey was flown over much
of Bakar in May 2019, which identified three targets zones for potential copper-silver redbed
mineralization based on coincident magnetic and conductive signatures that remain undrilled (see
news release September 19, 2019).
Geological m apping and geochemical sampling w ere completed during the summer of 2019,
which was largely focused on the Millington showing. Channel sampling was highlighted by
BK19-C04 that returned 10.0 m at 4.92% Cu and 27.7 g/t Ag along the strike of a mineralized
stratabound horizon with an approximate true thickness of at least 2.75 m. Stream sediment and
soil sampling also showed positive results that require follow up (see news release October 7,
2019).
Exploration fieldwork planning is well underway for B akar as part of the required transaction
work expenditures, and further information will be released in due course.
References
1 Perelló, J., Fleming, J.A., O’Kane, K.P., Burt, P.D., Clarke, G.A., Himes, M.D., and Reeves,
A.T., (1995): Porphyry Copper -Gold-Molybdenum Deposits in the Island Copper Cluster,
Northern Vancouver Island, British Columbia, Porphyry Deposits of the Northwest Cordillera of
North America, CIM Special Volume 46, pp. 214-238..
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 Min eral
Projects.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects
referred to herein other than the Bakar Property and mineralization at those other properties or
projects is not necessarily indicative of mineralization on the Bakar Property.
About District Metals Corp.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: 604-628-2669
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 prosp ective 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 al ong 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 Property.
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 statements” 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 state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be
taken”, “occur” or “be achieved” and other similar expressions. In addition, statements in this news releas e that not historical
facts are forward looking statements including statements regarding completion of the proposed transaction.
These statements and other forward-looking information are based on assumptions and estimates that the Company believes are
appropriate and reasonable in the circumstances, including, without limitation, assumptions about the satisfaction of any
conditions to closing including receipt of regulatory approvals, s.
There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ
materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from
the Company's expectations include; the risk that the proposed transaction is not completed for any reason. The Company does
not undertake to update or revise any forward -looking statements, except in accordance with applicable law. Readers are
cautioned not to put undue reliance on these forward-looking statements.