District Signs Definitive Agreement to Acquire 2.0% NSR Royalty on Viken Energy Metals Deposit in Sweden
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
District Signs Definitive Agreement to Acquire 2.0% NSR
Royalty on Viken Energy Metals Deposit in Sweden
Vancouver, B.C. January 8, 2025
January 8, 2025 – District Metals Corp. (TSX-V: DMX) (OTCQB: DMXCF) (FRA:
DFPP); (“District” or the “Company”) is pleased to announce that it has entered into a
definitive royalty purchase agreement (the “Purchase Agreement”) with an arm’s length
vendor (the “Vendor”) to acquire the 2.0% net smelter returns (“NSR”) royalty previously
granted by the Company over the remaining four mineral licences ( Norra Leden, Norr
Viken, Lill Viken, and Storviken) covering the Viken Deposit (Figure 1) located in
Jämtland County, central Sweden (see news release January 15, 2024). As a result, subject
to closing, District’s 100% owned Viken Deposit is now completely free of any NSR
royalty.
Pursuant to the Purchase Agreement, District will acquire the 2.0% NSR for a purchase
price consisting of 500,000 common shares of District (the ”Consideration Shares”).
Closing of the Purchase Agreement remains subject to TSX Venture Exchange (the
“TSXV”) approval. The Consideration Shares will be subject to a hold period of 4 months
and one day, from the date of issue.
Garrett Ainsworth, CEO of District, commented: “District consolidated 100% of the Viken
Energy Metals Deposit in January 2024, and we have now executed a definitive agreement
to make the Viken Deposit free and clear of any and all NSR royalties. Alum Shales are
the host rock for the Viken Deposit, which contains critical energy metals essential for the
green energy transition that include uranium, vanadium, nickel, molybdenum, copper, zinc,
and rare earth elements. Additionally, Alum Shales present the pote ntial to produce
significant amounts of sulphate of potash, which would greatly benefit the agriculturally
dominant Jämtland County.
The timing of this acquisition comes after the Swedish Government released their inquiry
report on lifting the uranium moratorium and their supporting press release that we
commented on here.”
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Viken Deposit
The Viken Deposit is situated in the province of Jämtland, approximately 570 km
northwest 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 mineral 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 Company views the 2010 Viken Report as relevant and reliable.
• 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.
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Telephone: (604) 288-4430
• An internal break-even cut-off grade of US$7.50/tonne was used in reporting this
historical estimate.
• The historical estimate categories are classified under the previous definition
standards and do not match the current categories under NI 43-101.
• Other than the 2014 Viken Report, the Company is not aware of any more recent
estimates or data available to the Company on the Viken deposit.
• 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 mineral resource estimates is considered to be a “historical estimate” under
NI 43 -101 and a qualified person has not done sufficient work to classify the
historical estimate as a current mineral resource and District is not treating the
historical estimate as a current mineral resource.
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 Company views the 2014 Viken Report as relevant and reliable.
• 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 an indicated mineral resource.
• An internal break-even cut-off grade of US$11.00/tonne was used in reporting this
historical estimate.
• The historical estimate categories are classified under the previous definition
standards and do not match the current categories under NI 43-101.
• The Company is not aware of any more recent estimates or data available to the
Company on the Viken deposit.
• 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
• The mineral resource estimates is considered to be a “historical estimate” under
NI 43 -101 and a qualified person has not done sufficient work to classify the
historical estimate as a current mineral resource and District is not treating the
historical estimate as a current mineral resource.
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 also contains
significant concentrations of potash. Alum Shale 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 Property 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 thrust ing 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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
Figure 1: Viken Mineral Licences with Outline of Viken Deposit
References
1 “Preliminary Economic Assessment on the Viken MMS Project, Sweden,” prepared for
Continental Precious Minerals Inc., dated October 19, 2010 with an effective date of
September 10, 2010 (the “2010 Viken Report”).
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
2 ”Updated Technical Report, Resource Estimate and Preliminary Economic Assessment
on the Viken MMS Project, Sweden,” prepared for Continental Precious Minerals Inc.,
dated February 27, 2014 with an effective date of February 6, 2014 (the “2014 Viken
Report”).
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 National Instrument 43 -101 – Standards of
Disclosure for Mineral Projects.
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 shareholde r
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 historic polymetallic resource estimates in
2010 and 2014.
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.
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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 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 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 closing thereof; the Company’s Swedish
polymetallic 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 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 abilit y 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 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 metals; fluctuations in foreign currency exchange
918-1030 West Georgia Street, Vancouver, BC, V6E 2Y3
Telephone: (604) 288-4430
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. For additional information regarding these risks, please see the Company’s Annual Information Form
dated July 11, 2022 for the fiscal year ended June 30, 2021, under the heading “Risk Factors”, which is available at
www.sedarplus.ca. These factors and assumpt ions 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 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.