District Metals Announces Closing of Private Placement Financing
District Metals Announces Closing of Private
Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - December 14, 2021) -
District Metals Corp. (TSXV:
DMX) (FSE: DFPP); ("District" or the "Company")
has closed its previously announced brokered
private placement financing pursuant to an agency agreement with Haywood Securities Inc. (the
"
Agent
"), raising aggregate gross proceeds of $1,800,000 (the "
Offering
"). Under the terms of the
Offering, the Company issued a total of 7,200,000 units (the "
Units
") at a price of $0.25 per Unit.
Garrett Ainsworth, President & CEO of District, commented: "This funding will allow us to continue the
ongoing Phase II exploration program at our high grade polymetallic Tomtebo Property located in the
Bergslagen Mining District of south-central Sweden planned to re-commence in early-2022. We are
eager to continue advancing the highly prospective Tomtebo Property with a focus on defining the high
grade polymetallic Steffenburgs zone, which recently returned 14.3 m at 9.5% Zn, 2.3% Pb, 40 g/t Ag,
0.4 g/t Au, and 0.2% Cu."
Each Unit consists of one common share in the capital of the Company and one-half of one common
share purchase warrant (each whole such purchase warrant, a "
Warrant
"). Each Warrant will entitle the
holder thereof to acquire one common share in the capital of the Company (a "
Warrant Share
") at
$0.35 per Warrant Share for a period of 24 months from the closing date.
The net proceeds from the Offering will be used for exploration at the Company's Tomtebo Property in
Sweden, and for working capital and general corporate purposes.
In consideration for its services, the Agent received a cash commission of up to 6% of the gross
proceeds raised under the Offering, and was issued an aggregate of 358,320 compensation options,
with each such compensation option entitling the holder to purchase one Unit of the Company at a price
of $0.25 per Unit for a period of 24 months from the date of issuance.
All securities issued and issuable pursuant to the Offering are subject to a statutory hold period and may
not be traded until April 15, 2022 except as permitted by applicable securities legislation and the rules
and policies of the TSX Venture Exchange. The offering remains subject to the final approval of the TSX
Venture Exchange (the "
TSXV
").
Certain related parties of the Company participated in the Offering. The issuance of Units to related
parties is considered to be a related party transaction within the meaning of TSXV Policy 5.9 and
Multilateral Instrument 61-101 ("
MI 61-101
"). The Company has relied on the exemptions from the
valuation and minority shareholder approval requirements of MI 61-101 (and Policy 5.9) as the fair
market value of the Units issued to such persons does not exceed 25% of the Company's market
capitalization.
The securities issued pursuant to the Offering 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 applicable U.S. state
securities laws, and may not be offered or sold in the United States This news release shall not
constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall
there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
Technical Information
The scientific and technical information disclosed in this news release has been previously disclosed in
the new release filed by the Company on SEDAR on November 22, 2021 titled, "District Intersects 14.3
m at 14.2% ZnEq on the Tomtebo Property". 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
.
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, located in the Bergslagen Mining District of south-
central Sweden, is the Company's main focus. The Tomtebo Property comprises 5,144 ha, and is
situated between the historic Falun Mine and Boliden's Garpenberg Mine 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 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 and information that may be considered "forward-looking statements" and "forward looking information"
within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements and 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
other similar expressions. In addition, statements in this news release that are not historical facts are forward looking statements, including statements or
information concerning the use of proceeds of the Offering, the Phase II exploration at the Company's Tomtebo Property, and final approval of the TSXV
in connection with the Offering.
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 future prices of precious metals; the price of other commodities
such as coal, fuel and electricity; currency exchange rates and interest rates; favourable operating conditions; political stability; timely receipt of
governmental approvals, licences and permits (and renewals thereof); access to necessary financing; stability of labour markets and market conditions in
general; availability of equipment; the accuracy of mineral resource estimates and preliminary economic assessments; estimates of costs and
expenditures to complete the Company's programs and goals; and there being no significant disruptions affecting the development and operation of the
project, including due to the COVID-19 pandemic.
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 risks
associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and
other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and
engineering assumptions; risks relating to unanticipated operational difficulties; failure of equipment or processes to operate in accordance with
specifications or expectations; cost escalations; unavailability of materials and equipment; government action or delays in the receipt of government
approvals; industrial disturbances or other job action; unanticipated events related to health, safety and environmental matters; risks relating to adverse
weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors
as detailed from time to time in the Company's continuous disclosure documents filed with Canadian securities regulators. The Company does not
undertake to update any forward-looking information, except in accordance with applicable securities laws.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
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