eResearch | On July 24, Discovery Metals Corp. (TSXV: DSV; OTCQX: DSVMF) announced a non-brokered private placement of C$35 million through the issuance of 25.9 million units at C$1.35 per unit, representing a premium to its last closing price.
Each Unit is comprised of one common share and one half of one common share purchase warrant, with each full warrant exercisable at C$1.75 for a period of two years. With this financing, Discovery Metals now has a C$75M cash balance.
Eric Sprott agreed to invest C$15 million in the private placement by acquiring 11.1 million units. This investment will result in Mr. Sprott increasing his holdings from 24% to over 27% of Discovery Metals’ issued and outstanding common shares.
“Discovery provides unmatched leverage to a rising silver price and I am very encouraged to see the Discovery team continue to execute on their plans at the Cordero project. I have continually grown my position in the Company and it is now one of my largest investments in the silver space,” commented Eric Sprott.
Discovery Metals is a Canadian exploration and development company focused on its 100%-owned Cordero silver project in Chihuahua State, Mexico. The 35,000-hectare property hosts a M&I resource of 1.0 billion ounces of silver equivalent at 32 g/t AgEq and an Inferred resource of 0.5 billion ounces of silver equivalent at 56 g/t AgEq. The project is one of the largest undeveloped silver resource globally.
The proceeds of the private placement will be used primarily to fund Discovery Metals’ continuing exploration program at its Cordero and Coahuila projects. Currently they are drilling a fully-funded 50,000-55,000 metre drill program to deliver a new Resource model in the H1/2021.
Discovery Metals is part of the Oxygen Group of companies, which has built nine mining companies with five being acquired for a total of C$3 billion.
Discovery Metals’ President and CEO Taj Singh said, “We are very pleased with the continued support of our largest shareholders which recognizes the exceptional exposure Cordero offers to increasing silver prices. Recent drill results show that our 100%-owned Cordero project is developing all the attributes of a tier 1 project – grade, scale, significant organic growth opportunities and well located in one of Mexico’s premier mining belts.
