Discovery Metals Announces Result of Special Meeting of Shareholders
December 12 2019 - 6:59AM
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 DiscoveryDiscovery 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)
613-9410info@dsvmetals.com
Neither the TSX Venture 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 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.
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