Discovery Silver Corp. (DSV-TSX, DSVSF-OTCQX)
(“Discovery” or the “Company”) is pleased to announce that it has
entered into an agreement with Clarus Securities Inc. and Cormark
Securities Inc. on behalf of a syndicate of agents (collectively,
the “Agents”), pursuant to which the Company intends to issue up to
37,500,000 common shares in the capital of the Company (the “Common
Shares”), at a price of C$1.20 per Common Share for gross proceeds
of up to approximately C$45,000,000 million (the “Offering”). The
Offering will be conducted on a best-efforts agency basis pursuant
to the terms of an agency agreement to be entered into on or before
April 14, 2023 among the Company and Agents. The Company has also
granted the Agents an option (the “Over-allotment Option”),
exercisable in whole or in part, to purchase up to an additional
5,625,000 Common Shares for a period of 30 days from and including
the closing date of the Offering to cover over-allotments, if any,
and for market stabilization purposes. If the Over-allotment Option
is exercised in full, the aggregate gross proceeds of the Offering
will be up to approximately C$51,750,000 million. The Offering is
expected to close on or about April 19, 2023, and is subject to
Discovery receiving all necessary regulatory approvals, including
the approval of the Toronto Stock Exchange.
The Company intends to use the net proceeds from
the Offering to fund the continued advancement and de-risking of
the Cordero Project and for working capital and general corporate
purposes.
The Common Shares issuable pursuant to the
Offering will be offered by way of: (i) a prospectus supplement
(the “Prospectus Supplement”) to Discovery’s short form base shelf
prospectus dated March 23, 2023, which Prospectus Supplement will
be filed with the securities commissions and other similar
regulatory authorities in each of the provinces and territories of
Canada, except Québec; (ii) in the United States (as defined in
Regulation S under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”)) by way of private placement
pursuant to the exemption from registration under the U.S.
Securities Act provided by Rule 506(b) of Regulation D thereunder
and/or Section 4(a)(2) thereof and similar exemptions under the
applicable securities laws of any state of the United States; and
(iii) in jurisdictions outside of Canada and the United States as
are agreed to by the Company and the Underwriters on a private
placement or equivalent basis.
The securities being offered have not been, nor
will they be, registered under the U.S. Securities Act, and may not
be offered or sold in the United States absent U.S. registration or
an applicable exemption from the U.S. registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any state of the United States in which such offer,
solicitation or sale would be unlawful.
About Discovery
Discovery’s flagship project is its 100%-owned
Cordero project, one of the world’s largest silver deposits. The
Preliminary Feasibility Study published in February 2023
demonstrates that Cordero has the potential to be developed into a
highly capital-efficient mine that offers the combination of
margin, size, and scalability. Cordero is located close to
infrastructure in a prolific mining belt in Chihuahua State,
Mexico.
On Behalf of the Board of Directors,
Tony Makuch, P.EngCEO & Director
For further information contact:
Forbes Gemmell, CFAVP Corporate
DevelopmentPhone: 416-613-9410Email:
forbes.gemmell@discoverysilver.comWebsite:
www.discoverysilver.com
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of the applicable
Canadian and U.S. securities legislation. All statements, other
than statements of historical fact, are forward-looking statements
and are based on expectations, estimates and projections as at the
date of this news release. Any statement that involves discussion
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions, future events or performance
(often, but not always using phrases such as “plans”, “expects”,
“is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, or “believes” or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved) are not statements of
historical fact and may be forward-looking statements. In this news
release, forward-looking statements relate, among other things, to:
the filing of the Prospectus Supplement; receipt of all regulatory
approvals in connection with the Offering; the completion of the
Offering, and the use of the net proceeds therefrom; anticipated
advancement of mineral properties or programs; future operations;
future growth potential of Discovery; and future development
plans.
These forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business. Management believes that these assumptions are
reasonable. Forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include, among others: inability of the
Company to satisfy the conditions to closing the Offering; risks
related to the speculative nature of the Company’s business; the
Company’s formative stage of development; the impact of COVID19 on
the timing of exploration and development work; the Company’s
financial position; possible variations in mineralization, grade or
recovery rates; actual results of current exploration activities;
conclusions of future economic evaluations; fluctuations in general
macroeconomic conditions; fluctuations in securities markets;
fluctuations in spot and forward prices of gold, precious and base
metals or certain other commodities; fluctuations in currency
markets; change in national and local government, legislation,
taxation, controls regulations and political or economic
developments; risks and hazards associated with the business of
mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected
formation pressures, cave-ins and flooding); inability to obtain
adequate insurance to cover risks and hazards; the presence of laws
and regulations that may impose restrictions on mining; employee
relations; relationships with and claims by local communities and
indigenous populations; availability of increasing costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government
authorities); and title to properties. Such factors will be
described in detail in the Prospectus Supplement and the documents
incorporated by reference therein.
Forward-looking statements contained herein are
made as of the date of this news release and the Company disclaims
any obligation to update any forward-looking statements, whether as
a result of new information, future events or results, except as
may be required by applicable securities laws. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements and there may
be other factors that cause results not to be anticipated,
estimated or intended. Accordingly, readers should not place undue
reliance on forward-looking information.
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