Discovery Metals Announces Result of Special Meeting of Shareholders
TORONTO, Dec. 12, 2019 (GLOBE NEWSWIRE) -- 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 converted 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 programs. 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, Discovery 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
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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) unless 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 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.
