VANCOUVER, BC, Dec. 10, 2020 /CNW/ - District Metals
Corp. (TSXV: DMX) (FRA: DFPP); ("District" or the
"Company") is pleased to announce that it has entered into an
agreement with Haywood Securities Inc. as sole lead agent (the
"Agent"), who has agreed to sell, on a commercially
reasonable efforts private placement basis, up to 10,000,000 units
(the "Units") at a price of $0.30 per Unit (the "Issue Price") to
raise aggregate gross proceeds of up to $3,000,000 (the "Offering").
Each Unit will consist of one common share in the capital of the
Company (a "Unit Share") and one-half of one common share
purchase warrant (each whole such purchase warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to
acquire one common share in the capital of the Company (a
"Warrant Share") at $0.42 per
Warrant Share for a period of 24 months from the Closing Date (as
hereinafter defined), provided that if, at any time prior to the
expiry date of the Warrants, the volume weighted average trading
price of the common shares in the capital of the Company on the TSX
Venture Exchange is equal to or greater than $0.70 for 10 consecutive trading days, the
Company may, within 15 days of the occurrence of such event,
deliver a notice to the holders of Warrants accelerating the expiry
date of the Warrants to the date that is 30 days following the date
of such notice (the "Accelerated Exercise Period"). Any
unexercised Warrants shall automatically expire at the end of the
Accelerated Exercise Period.
The Company has granted the Agents an option, exercisable in
whole or in part by giving notice to the Company at any time up to
48 hours prior to the Closing Date, to sell up to an additional 15%
of Units at the Issue Price.
The net proceeds from the Offering will be used for exploration
at the Company's Tomtebo project in Sweden, and for working capital and general
corporate purposes.
Closing of the Offering is expected to occur on or about
December 30, 2020 (the "Closing
Date") and is subject to certain customary conditions
including, but not limited to, the receipt of all necessary
regulatory approvals and acceptance of the TSX Venture
Exchange.
The securities issued pursuant to the Offering will be subject
to a statutory hold period of four months and one day following the
Closing Date.
The securities to be offered pursuant to the Offering have not
been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act") or any applicable U.S. state securities laws, and may not
be offered or sold in the United
States absent registration or any applicable exemption from
the registration requirements of the U.S. Securities Act and
applicable U.S. state securities laws. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States,
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
About District Metals Corp.
District Metals Corp. is led by industry professionals with a
track record of success in the mining industry. The Company's
mandate is to seek out, explore, and develop prospective mineral
properties through a disciplined science-based approach to create
shareholder value and benefit other stakeholders.
The advanced exploration stage Tomtebo Property, located in the
Bergslagen Mining District of south-central Sweden, is the Company's main focus. The
Tomtebo Property comprises 5,144 ha, and is situated between the
historic Falun Mine and Boliden's Garpenberg Mine located 25 km to
the northwest and southeast, respectively. Two historic
polymetallic mines and numerous polymetallic showings are located
on the Tomtebo Property along an approximate 17 km trend that
exhibits similar geology, structure, alteration and VMS/SedEx style
mineralization as other significant mines within the district.
Mineralization that is open at depth and along strike at the
historic mines on the Tomtebo Property has not been followed-up and
modern systematic exploration has never been conducted on the
Property.
On Behalf of the Board of Directors
"Garrett Ainsworth"
President and Chief Executive Officer
(604) 288-4430
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statement Regarding "Forward-Looking"
Information.
This news release contains certain statements and information
that may be considered "forward-looking statements" and "forward
looking information" within the meaning of applicable securities
laws. In some cases, but not necessarily in all cases,
forward-looking statements and forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "is positioned", "estimates", "intends",
"assumes", "anticipates" or "does not anticipate" or "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", "will"
or "will be taken", "occur" or "be achieved" and other similar
expressions. In addition, statements in this news release that are
not historical facts are forward looking statements, including
statements or information concerning the use of proceeds of
the Offering; the Company's expectations about when the Offering
will close, if the Offering closes at all; the Company's
expectation that it will meet the requirements of the TSX-V
necessary to have the Unit Shares and Warrant Shares listed;
the size and other terms of the Offering and the expectation
that all of the closing conditions will be met.
These statements and other forward-looking information are
based on assumptions and estimates that the Company believes are
appropriate and reasonable in the circumstances, including, without
limitation, assumptions about the future prices of
precious metals; the price of other commodities such as coal, fuel
and electricity; currency exchange rates and interest rates;
favourable operating conditions; political stability; timely
receipt of governmental approvals, licences and permits (and
renewals thereof); access to necessary financing; stability of
labour markets and market conditions in general; availability of
equipment; the accuracy of mineral resource estimates and
preliminary economic assessments; estimates of costs and
expenditures to complete the Company's programs and goals; and
there being no significant disruptions affecting the development
and operation of the project, including due to the COVID-19
pandemic.
There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
the Company's expectations include risks associated with the
business of the Company; business and economic conditions in the
mining industry generally; the supply and demand for labour and
other project inputs; changes in commodity prices; changes in
interest and currency exchange rates; risks relating to inaccurate
geological and engineering assumptions; risks relating to
unanticipated operational difficulties; failure of equipment or
processes to operate in accordance with specifications or
expectations; cost escalations; unavailability of materials and
equipment; government action or delays in the receipt of government
approvals; industrial disturbances or other job action;
unanticipated events related to health, safety and environmental
matters; risks relating to adverse weather conditions; political
risk and social unrest; changes in general economic conditions or
conditions in the financial markets; and other risk factors as
detailed from time to time in the Company's continuous disclosure
documents filed with Canadian securities regulators. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
SOURCE District Metals Corp.