Discovery Metals Announces Result of Special Meeting of Shareholders
December 12, 2019
DISCOVERY METALS ANNOUNCES RESULT OF SPECIAL MEETING OF SHAREHOLDERS
Toronto, Ontario – Discovery Metals Corp. ( “Discovery” or “the Company ”) (TSXV: DSV ,
OTCQX: DSVMF ) is pleased to announce that at a special meeting of the Company ’s
shareholders on December 11, 2019, Discovery’s shareholders passed a resolution approving
2176423 Ontario Ltd. , a corporation beneficially owned by Mr. Eric Sprott , to become a
“Control Person” as defined in the policies of the TSX Venture Exchange (including ownership
of greater than 20% of the voting securities outstanding) of Discovery. As a result, 3,311,111
subscription receipts of Discovery (“Subscription Receipts”) issued in connection with the
Company’s non-brokered private placement previously announced on November 5, 2019 (the
“Private Placement ”), were automatically convert ed into 3,311,111 Common Shares of
Discovery, for no additional consideration.
Mr. Sprott, through 2176423 Ontario Ltd., acquired 7,800,000 Common Shares and 3,311,111
Subscription Receipts in the Private Placement, for a total investment of CAD$5,000,000. Prior
to the closing of the Private Placement, Mr. Sprott owned 33,499,000 Common shares of
Discovery, representing 19.9% of the interest of the Company on a non-diluted basis. Through
the purchase of Common Shares in the Private Placement , Mr. Sprott maintained a 19.9%
interest in Discovery . The conversion of the Subscription Receipts results in Mr. Sprott ’s
interest in the Company increasing to approximately 21%.
The proceeds of the Private Placement will be used primarily to fund Discovery’s continuing
exploration program s. A portion of the proceeds will be used for general working capital
purposes.
About Discovery
Discovery Metals Corp. (TSX -V: DSV, OTCQX: DSVMF) is a Canadian exploration and
development company headquartered in Toronto, Canada focused on historic mining districts
in Mexico. Discovery’s flagship project is its 100%-owned Cordero silver project in Chihuahua
State, Mexico. The 35,000 -hectare property covers an entire porphyry district that hosts the
Cordero deposit and numerous exploration targets for bulk tonnage diatreme -hosted,
porphyry-style, and carbonate replacement deposits. In addition, Discove ry holds a 150,000-
hectare land package containing numerous high -grade carbonate replacement -style silver -
zinc-lead exploration projects in Coahuila State, Mexico. The Coahuila project land holdings
contain numerous historical direct -ship ore workings and significant underground
development.
For Further Information:
Discovery Metals Corp.
(416) 613-9410
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchang e) 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 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. Persons (as defined in
Regulation S under the 1933 Act) unle ss registered under the 1933 Act and applicable state securities laws, or an exemption from such
registration requirements is available.
This news release may include forward -looking statements that are subject to inherent risks and uncertainties. All stat ements 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 obligat ion to
update any forward-looking statements except as required under applicable laws.