Discovery Metals Closes $9.0 Million Private Placement with $7.7 Million Investment from Eric Sprott
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
July 24, 2019
DISCOVERY METALS CLOSES $9.0 MILLION PRIVATE PLACEMENT
WITH $7.7 MILLION INVESTMENT FROM ERIC SPROTT
Toronto, Ontario – Discovery Metals Corp. (“ Discovery”) (TSXV: DSV) is pleased to announce that it
has closed its non-brokered private placement (the “ Private Placement”) previously announced on
July 18, 2019, raising $9,004,770 through the issuance of 23,216,174 common shares (“Common
Shares”) at a price of $0.23 per Common Share and 15,935,000 subscription receipts (“Subscription
Receipts”) at a price of $0.23 per Subscription Receipt.
Mr. Eric Sprott (through 2176423 Ontario Ltd. , a corporation which is beneficially owned by him )
acquired 17,564,000 Common Shares of the P rivate Placement, and as a result he is now the
beneficial owner of 19.9% of Discovery’s issued and outstanding Common Shares. Prior to the closing
of the Private Placement, Mr. Sprott did not hold any securities of Discovery. In addition, Mr. Sprott
has acquired 15,935,000 Subscription Receipts that, if converted, will maintain his 19.9% interest in
Discovery after completion of the acquisition of Levon Resources Ltd (“Levon”), as described below.
Mr. Sprott’s total investment in Discovery through the Private Placement is $7,704,770 comprised of
$4,039,720 for the Common Shares and $3,665,050 for the Subscription Receipts.
Proceeds from the Subscription Receipts have been placed in escrow, to be released to Discovery on
the closing of the plan of arrangement pursuant to which Discovery intends to acquire all the issued
and outstanding common shares of Levon (the “ Levon Trans action”). The Levon Transaction is
described in a news release dated May 30, 2019. On conversion, each Subscription Receipt will
automatically convert into one Common Share, for no additonal consideration. In the event that the
Levon Transaction is not completed by August 31, 2019, each Subscription Receipt will be cancelled,
and the subscription funds will be returned to the subscriber.
Taj Singh, President and CEO of Discovery commented, “ We are excited to have closed this financing
and we welcome Mr. Sprott as our largest shareholder. Discovery is now solidly financed and is well-
positioned to aggressively explore and develop its district- scale silver- rich projects in a rallying
precious metals price environment.”
Certain insiders of Discovery have acquire d Common Shares in the P rivate Placement, representing
less than 2% of the total issued Common Shares after closing. These acquisitions are considered
"related party transactions" as defined under Multilateral Instrument 61-101.
Discovery has paid finders’ fees of $17,500 to certain arms’ length parties who introduce d Discovery
to investors, in accordance with the policies of the TSX Venture Exchange. The securities are subject
to a statutory hold period expiring November 25, 2019.
The Common Shares and Subscription Receipts were acquired by Mr. Sprott through 2176423
Ontario Ltd. for investment purposes. Mr. Sprott has a long -term view of the investment and may
acquire additional securities of the Company including on the open market or through private
acquisitions or sell securities of the Company including on the open market or through private
dispositions in the future depending on market conditions, reformulation of plans and/or other
relevant factors. A copy of 2176423 Ontario Ltd.’s early warning report will appear on the Discovery's
profile on SEDAR and may also be obtained by calling (416) 362 -7172 (200 Bay Street, Suite 2600,
Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Discovery
Discovery is focused on discovering and advancing high-grade polymetallic deposits in a land package
of approximately 150,000 hectares covering a historic mining district in Coahuila State, Mexico. The
portfolio of three large-scale, drill-ready projects and several earlier-stage prospects, all with shallow
high-grade Ag-Zn-Pb mineralization, is situated in a world -class carbonate replacement depos it belt
that stretches from southeast Arizona to central Mexico. The land holdings contain numerous
historical direct-ship ore workings with several kilometers of underground development, but there
was no modern exploration or drill testing on the properties prior to the work carried out by
Discovery. For further information, please visit Discovery's website at www.dsvmetals.com.
Levon is exploring one of the world’s largest silver resources at its 100% -owned Cordero Project in
Chihuahua State, Mexico. The 37,000 hectare property covers an entire porphyry district that hosts
the announced resource and numerous exploration targets for bulk tonnage di atreme-hosted,
porphyry-style, and carbonate replacement deposits. For further information please visit Levon’s
website at www.levon.com , and the news release of Discovery dated May 30, 2019 as filed on
SEDAR.
For Further Information:
Discovery Metals Corp.
(416) 613-9410
Neither the TSX Venture Exchange (the “Exchange ”) nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 economi c, 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 Levon Transaction or the Pri vate 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.