Discovery Metals Announces $35 Million Private Placement with $15 Million Investment from Eric Sprott
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Discovery Metals Announces $35 Million Private Placement with $15
Million Investment from Eric Sprott
July 24, 2020, Toronto, Ontario - Discovery Metals Corp. (TSXV: DSV; OTCQX: DSVMF)
(“Discovery” or “the Company”) is pleased to announce that it has arranged a non- brokered
institutional private placement (the “ Private Placement ”) to raise C$35,000,000 through the
issuance of 25,925,925 units (“Units”) at a price of C$1.35 per Unit, representing a premium to its
last closing price. Each Unit is comprised of one common share of Discovery (“ Common Share”)
and one half of one Common Share purchase warrant, with each full warrant exercisable at C$1.75
for a period of two years after the date of issuance.
Mr. Eric Sprott has agreed to invest C$15,000,000 in the Private Placement, on the acquisition of
11,111,111 Units. This investment will result in Mr. Sprott holding approximately 27.1% of
Discovery’s issued and outstanding Common Shares, post-closing on an undiluted basis.
Mr. Eric Sprott commented, “ Discovery provides unmatched leverage to a rising silver price and I
am very encouraged to see the Discovery team continue to execute on their plans at the Cordero
project. I have continually grown my position in the Company and it is now one of my largest
investments in the silver space.”
Taj Singh, Discovery’s President and CEO stated: “We are very pleased with the continued support
of our largest shareholders which recognizes the exceptional exposure Cordero offers to increasing
silver prices. Recent drill results show that our 100% -owned Cordero project is developing all the
attributes of a tier 1 project – grade, scale, significant organic growth opportunities and well located
in one of Mexico’s premier mining belts. The current financing, priced at a premium to market, reflects
strong institutional demand, and will create an industry leading balance sheet with over C$75 million
in cash allocated for aggressive exploration, resource expansion, and future development.”
The proceeds of the Private Placement will be used primarily to fund Discovery’s continuing
exploration program at its Cordero project and its Coahuila projects. A portion of the proceeds will
be used for general working capital and business development purposes.
Discovery anticipates that certain insiders will acquire securities in the Private Placement. To the
extent such insiders participate in the Private Placement, any such participation would be considered
a “related party transaction” as defined under Multilateral Instrument 61-101.
Discovery may pay a finder’s fee to one or more arms’ length parties who introduce Discovery to
investors, in accordance with the policies of the TSX Venture Exchange. Clarus Securities Inc., Eight
Capital, Sprott Capital Partners LP are acting as finders for North American investors and Arlington
NEWS RELEASE
Group Asset Management Limited are acting as finders for European investors on the Private
Placement. The securities issued will be subject to a four -month-and-one-day statutory hold period
from the date of issuance. Closing of the Private Placement remains subject to TSX Venture
Exchange approval.
On Behalf of the Board of Directors,
Taj Singh, M.Eng., P.Eng., CPA
President, Chief Executive Officer, and Director
About Discovery
Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF) is a Canadian exploration and development
company headquartered in Toronto, Canada, and focused on historic mining districts in Mexico.
Discovery’s flagship is its 100% -owned Cordero silver projec t in Chihuahua State, Mexico. The
35,000-hectare property covers a large district that hosts the announced resource as well as
numerous exploration targets for bulk tonnage diatreme -hosted, porphyry -style, and carbonate
replacement deposits.
For further information contact:
Forbes Gemmell, CFA
VP Corporate Development & Investor Relations
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 does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any 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. P ersons (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 guarant ees 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 f luctuations 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 advi sed 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.