Discovery Divests Non-Core Exploration Property
Discovery Divests Non-Core Exploration Property
September 27, 2021, Toronto, Ontario - Discovery Silver Corp. (TSX -V: DSV, OTCQX:
DSVSF) (“Discovery” or the “Company”) is pleased to announce that it has entered into an
arm's length assignment and assumption agreement (the “Agreement”) with Monumental Gold
Ltd. (“Monumental ”) (TSX -V: MGLD) dated September 22, 2021, whereby Discovery has
agreed to transfer and assign its rights and obligations under the option agreement on the Jemi
Rare Earth Property ( the “Property” and the “Jemi Option Agreement”), located in Coahuila,
Mexico, to Monumental.
Under the terms of the Agreement, Monumental will assume the Jemi Option Agreement and
in return will issue to Discovery that number of common shares of Monumental that would
result in Discovery holding 9.9% of the issued and outstanding common shares of Monumental
(“Payment Shares”) on a non -diluted basis. The Payment Shares are subject to a statutory
hold period of four months and a day from the date of issuance and a 12-month voluntary hold
period from the date of issuan ce. In addition, subject to the exercise of the option to acquire
the Property pursuant to the Agreement, Discovery would retain a 1.5% net smelter returns
royalty payable upon the commercial production of the Property in accordance with the terms
set out in the Agreement and pursuant to a separate royalty agreement between Discovery
and Monumental’s Mexican subsidiaries.
The divestiture of the Property is consistent with the Company’s strategy of streamlining its
property portfolio in order to focus on its flagship Cordero project in Chihuahua, Mexico. The
transaction also provides Discovery with investment exposure to an early -stage exploration
property with known showings of rare earth elements.
The transfer of the Jemi Option Agreement to Monumental is subject to the approval of the
TSX Venture Exchange. For more details, please see Monumental’s news release at:
https://www.newswire.ca/news-releases/monumental-gold-corp-enters-into-assignment-and-
assumption-agreement-with-discovery-silver-corp-to-acquire-jemi-rare-earth-elements-
project-869598536.html
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA,
President, Chief Executive Officer and Director
For further information contact:
Forbes Gemmell, CFA
VP Corporate Development & Investor Relations
Phone: 416-613-9410
NEWS RELEASE
Email: [email protected]
Website: www.discoverysilver.com
About Discovery
Discovery’s flagship project is its 100%-owned Cordero project, one of the few silver projects
globally that offers margin, size and scaleability. Cordero is located close to infrastructure in a
prolific mining belt in Chihuahua State, Mexico, and is suppo rted by an industry leading
balance sheet with over C$80 million available for aggressive exploration, resource expansion
and future development. Discovery was a recipient of the 2020 TSX Venture 50 award and the
2021 OTCQX Best 50 award.
FORWARD-LOOKING STATEMENTS:
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.
This news release is not for distribution to United States newswire services or for dissemination in the United States.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of an y of the
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United
States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as
amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account
or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable
state securities laws, or an exemption from such registration requirements is available.
Cautionary Note Regarding Forward-Looking Statements
This news release may include forward -looking statements that are subject to inherent risks and uncertainties. All statements
within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery believes
the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ materially from those described in forward-looking
statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include
fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market
or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised
to rely on their own evaluation of such uncertainties. There can be no assurance that the Private Placement will close on the
announced terms. Discovery does not assume any obligation to update any forward-looking statements except as required under
applicable laws.