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District Signs Definitive Agreement to Acquire 2.0% NSR Royalty on Viken Energy Metals Deposit in Sweden
Vancouver, British Columbia--(Newsfile Corp. - January 8, 2025) - District Metals Corp. (TSXV: D...
About this update from District Metals Corp.
[{"type":"text","content":"District Signs Definitive Agreement to Acquire 2.0% NSR Royalty on Viken Energy Metals Deposit in SwedenVancouver, British Columbia--(Newsfile Corp. - January 8, 2025) - District Metals Corp. (TSXV: DMX) (OTCQB: DMXCF) (FSE: DFPP); (\"District\" or the \"Company\") is pleased to announce that it has entered into a definitive royalty purchase agreement (the \"Purchase Agreement\") with an arm's length vendor (the \"Vendor\") to acquire the 2.0% net smelter returns (\"NSR\") royalty previously granted by the Company over the remaining four mineral licences (Norra Leden, Norr Viken, Lill Viken, and Storviken) covering the Viken Deposit (Figure 1) located in Jämtland County, central Sweden (see news release January 15, 2024). As a result, subject to closing, District's 100% owned Viken Deposit is now completely free of any NSR royalty.Pursuant to the Purchase Agreement, District will acquire the 2.0% NSR for a purchase price consisting of 500,000 common shares of District (the \"Consideration Shares\"). Closing of the Purchase Agreement remains subject to TSX Venture Exchange (the \"TSXV\") approval. The Consideration Shares will be subject to a hold period of 4 months and one day, from the date of issue.Garrett Ainsworth, CEO of District, commented: \"District consolidated 100% of the Viken Energy Metals Deposit in January 2024, and we have now executed a definitive agreement to make the Viken Deposit free and clear of any and all NSR royalties. Alum Shales are the host rock for the Viken Deposit, which contains critical energy metals essential for the green energy transition that include uranium, vanadium, nickel, molybdenum, copper, zinc, and rare earth elements. Additionally, Alum Shales present the potential to produce significant amounts of sulphate of potash, which would greatly benefit the agriculturally dominant Jämtland County.The timing of this acquisition comes after the Swedish Government released their inquiry report on lifting the uranium moratorium and their supporting press release that we commented on here.\"Viken DepositThe Viken Deposit is situated in the province of Jämtland, approximately 570 km northwest of Stockholm, Sweden. Infrastructure is well developed in the area with daily air service, as well as rail and truck freight services. Electrical power and modern communications are also readily...