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Discovery Metals Announces C$25.0 Million Private Placement With C$10.0 Million Investment From Eric Sprott
TORONTO, May 18, 2020 (GLOBE NEWSWIRE) -- Discovery Metals Corp. (“Discovery”) (TSXV: DSV, OTCQX: DSVMF) is pleased to announce that it intends to complete a no
About this update from Discovery Silver Corp
[{"type":"text","content":" TORONTO, May 18, 2020 (GLOBE NEWSWIRE) -- Discovery Metals Corp. (“Discovery”) (TSXV: DSV, OTCQX: DSVMF) is pleased to announce that it intends to complete a non-brokered private placement (the “Private Placement”) to raise up to C$25,000,000 through the issuance of up to 45,454,545 units (“Units”) at a price of C$0.55 per Unit. 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$0.77 for a period of two years after the date of issuance. Mr. Eric Sprott has agreed to invest C$10,000,000 in the Private Placement, on the acquisition of 18,181,818 Units. Assuming the Private Placement is fully subscribed, this investment will result in Mr. Sprott holding approximately 24.4% of Discovery’s issued and outstanding Common Shares, post-closing. Taj Singh, President and CEO of Discovery commented, “The strong investment interest in Discovery is a clear reflection of the exposure and leverage that our Cordero project provides to a rising silver price. It is also indicative of the very favourable investment case for silver considering the current gold-silver ratio of 107:1 is markedly higher than the 50-year average of approximately 60:1. Upon completion of this financing Discovery will have over $40 million of cash on its balance sheet - this positions Discovery as one of the best financed silver exploration companies in the industry and provides the firepower to aggressively advance Cordero and to accelerate our exploration efforts on the surrounding regional property package.” 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 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. and Sprott Capital Partners LP are acting as advi...