CLOSES FIRST TRANCHE 2020-06-01

06/01/2020 (MT Newswires) -- Discovery Metals Corp. (DSV.V) has closed the first tranche of the non-brokered private placement which was previously announced on May 18. The first tranche consists of approximately 32 million units at $0.55 apiece for aggregate proceeds of $17.1 million. Each unit is comprised of one common share of Discovery and one half of one common share purchase warrant, with each full warrant exercisable at $0.77 for two years after the date of issue. Discovery intends to close a further $7.9 million in subscriptions in a second tranche of the private placement, for an aggregate total of $25 million.

Eric Sprott, through 2176423 Ontario Ltd., acquired 18.18 million units in the private placement, for a total investment of $10 million. Prior to the closing of the placement, Sprott owned 21.1% of Discovery on a non-diluted basis. He will now own approximately 25.9% interest in Discovery on a non-diluted basis and approximately 28.6% on a partially diluted basis if the warrants are exercised.

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