District Metals Announces Upsized $4.5 Million Private Placement Financing /NOT FOR DISTIRBUTION TO
District Metals Announces Upsized $4.5 Million
Private Placement Financing
/NOT FOR DISTIRBUTION TO
UNITED STATES
NEWSWIRE SERVCES OR DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
Dec. 14, 2020
/CNW/ -
District Metals Corp.
(TSX-V: DMX) (FRA: DFPP)
;
("District" or the "Company")
is pleased to announce that, in connection with its previously
announced brokered private placement financing (the "
Offering
"), it has entered into an agreement
with Haywood Securities Inc. (the "
Agent
") to increase the size of the Offering up to 15,000,000
units (the "
Units
") at a price of
$0.30
per Unit (the "
Issue Price
") to raise aggregate gross proceeds
of up to
$4,500,000
(the "
Offering
").
Each Unit will consist of one common share in the capital of the Company (a "
Unit Share
") 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
$0.42
per Warrant Share for a period of 24 months from the
Closing Date (as hereinafter defined), provided that if, at any time prior to the expiry date of the
Warrants, the volume weighted average trading price of the common shares in the capital of the
Company on the TSX Venture Exchange is equal to or greater than
$0.70
for 10 consecutive trading
days, the Company may, within 15 days of the occurrence of such event, deliver a notice to the
holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days
following the date of such notice (the "
Accelerated Exercise Period
"). Any unexercised Warrants
shall automatically expire at the end of the Accelerated Exercise Period.
The net proceeds from the Offering will be used for exploration at the Company's Tomtebo project in
Sweden
, and for working capital and general corporate purposes.
Closing of the Offering is expected to occur on or about
December 30, 2020
(the "
Closing Date
")
and is subject to certain customary conditions including, but not limited to, the receipt of all
necessary regulatory approvals and acceptance of the TSX Venture Exchange.
The securities issued pursuant to the Offering will be subject to a statutory hold period of four
months and one day following the Closing Date.
The securities to be offered 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
absent registration or
any applicable exemption from the registration requirements of the U.S. Securities Act and
applicable U.S. state securities laws. 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.
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
Company's expectations about when the Offering will close, if the Offering closes at all; the
Company's expectation that it will meet the requirements of the TSX-V necessary to have the Unit
Shares and Warrant Shares listed;
the size and other terms of the Offering and the expectation that
all of the closing conditions will be met.
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.
SOURCE
District Metals Corp.
View original content:
http://www.newswire.ca/en/releases/archive/December2020/14/c4298.html
%SEDAR: 00004264E
For further information:
Garrett Ainsworth, President and Chief Executive Officer, (604) 288-4430
CO: District Metals Corp.
CNW 11:11e 14-DEC-20