Discovery Silver Corp. (DSV-TSX, DSVSF-OTCQX)
(“
Discovery” or the “
Company”) is
pleased to announce that it has closed its previously announced
“marketed” public offering of common shares of the Company (the
“
Shares”) for aggregate gross proceeds of
approximately C$51.75 million (the “
Offering”).
The Offering was conducted by a syndicate of agents co-led by
Clarus Securities Inc. and Cormark Securities Inc., and including
BMO Nesbitt Burns Inc., Eight Capital, and PI Financial Corp.
(collectively, the “
Agents”), and consisted of the
sale of 43,125,000 Shares which included the full exercise of the
Agents’ option at a price of C$1.20 per Share.
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.
Tony Makuch, CEO, commented: “We appreciate the
support of our existing institutional shareholders and we welcome
the new institutional investors who participated in this financing.
We are now in a very strong financial position to advance Cordero
to a potential construction decision through delivering on key
de-risking milestones along with our ongoing feasibility study
work.” Mr. Makuch also purchased 1,000,000 Shares pursuant to the
Offering.
The Shares issued pursuant to the Offering were
qualified for distribution pursuant to the prospectus supplement
(the “Prospectus Supplement”) of the Company dated
April 14, 2023 and a short form base shelf prospectus (the
“Base Shelf Prospectus”) dated March 23, 2023,
filed in each of the provinces and territories of Canada, other
than Quebec, and offered and sold elsewhere outside of Canada on a
private placement basis. The Prospectus Supplement, Base Shelf
Prospectus, and the documents incorporated by reference therein,
are available on the Company’s issuer profile on SEDAR at
www.sedar.com.
Participation by Mr. Makuch in the Offering was
considered a “related party transaction” pursuant to Multilateral
Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions (“MI 61-101”). The Company
was exempt from the requirements to obtain a formal valuation or
minority shareholder approval in connection with Mr. Makuch’s
participation in the Offering in reliance of sections 5.5(a) and
5.7(1)(a) of MI 61-101, as the fair market value of the Shares
acquired by Mr. Makuch was not more than 25% of the Company’s
market capitalization. The Company did not file a material change
report 21 days in advance of the closing of the Offering as the
participation by Mr. Makuch had not been confirmed at that
time.
The securities referred to in this news release
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 does 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.
Any public offering of securities in the United States must be made
by means of a prospectus containing detailed information about the
Company and management, as well as financial statements.
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 anticipated use of the net proceeds from the Offering;
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: 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 are 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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