Discovery Metals Closes Final Tranche of C$25 Million Private Placement and Initiates Restart of Operations

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[{"type":"text","content":" TORONTO, June 09, 2020 (GLOBE NEWSWIRE) -- Discovery Metals Corp. (TSXV: DSV; OTCQX: DSVMF) is pleased to announce that it has closed the second and final tranche of its non-brokered private placement (the “Private Placement”), consisting of 45,454,545 units (“Units”) at a price of C$0.55 per Unit for aggregate proceeds of C$25,000,000. 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 (a “Warrant”) exercisable at C$0.77 for a period of two years after the date of issuance. The second tranche closed on June 8, 2020 and consisted of 14,363,600 Units for aggregate proceeds of C$7,899,980. Discovery first announced the Private Placement on May 18, 2020 and announced the closing of the first tranche of C$17,100,020 of the Private Placement on June 1, 2020. The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project with strict COVID-19 health and safety protocols. The Company is finalizing additional measures, including mandatory testing of all onsite workers to ensure the safety of its employees, consultants, contractors and communities. The Company will begin with one drill rig and will closely monitor the ramp-up of exploration activities. Further drill rigs will only be added when the Company is confident that health and safety risks can be managed effectively.     Taj Singh, President and CEO of Discovery commented, “With the closing of the financing we now have over $40 million of cash on our balance sheet, putting us in a strong position as we restart our exploration activities at Cordero. We look forward to safely resuming operations later this month and carrying on with the positive momentum we have generated from our excellent exploration results to date.” Financing Close Gross proceeds of the Private Placement, including the first tranche, totaled C$25,000,000 consisting of the issuance of 45,454,545 Units. Discovery has paid an aggregate total in finders’ and advisory fees of C$1,185,001 in cash and issued 804,545 finder warrants with an exercise price of $0.55 and a two year expiry to certain arms’ length parties who introduced Discovery to investors, in accordance with the policies of the TSX Venture Exchange. The securities issued on closing of t...

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