Mining
Tuesday, November 28th, 2023 8:51 pm EDT
Key Points
Private Placement Closure:
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- Discovery Lithium Inc. has completed the second and final tranche of a non-brokered private placement of flow-through units.
- The company issued a total of 1,400,000 flow-through units at a price of $0.65 per unit, resulting in gross proceeds of $910,000.
- Each flow-through unit comprises one common share issued on a flow-through basis and one-half of one share purchase warrant.
- Each warrant is exercisable to acquire one non-flow-through common share at a price of $0.75 per share for a 24-month period from the date of issuance.
- The funds raised will be used for “Canadian exploration expenses” related to “flow-through critical mineral mining expenditures” on the company’s properties in Quebec.
Media & Communications:
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- Discovery Lithium Inc. has extended its engagement with Rumble Strip Media Inc. on a month-to-month basis.
- Rumble will provide social media, marketing, and consulting services to Discovery in exchange for monthly payments of US$150,000.
- The services may include investor relations activities, and the extension was detailed in the company’s news release dated October 12, 2023.
Discovery Lithium Inc. has closed the second and final tranche of its previously announced non-brokered private placement of flow-through units of the company. The Company issued an aggregate of 1,400,000 flow-through units at a price of $0.65 per FT Unit for gross proceeds of $910,000 (the “Closing”), with each FT Unit comprising one common share of the Company issued on a flow-through basis and one-half of one share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable to acquire one non-flow-through common share of the Company at a price of $0.75 per share for a period of 24 months from the date of issuance.
In connection with the Closing, GloRes Securities Inc. received 49,000 finder’s warrants and Marquest Asset Management received a cash finder’s fee of $63,700 and 49,000 finder’s warrants, with each finder’s warrant exercisable to acquire one non-flow-through common share of the Company at a price of $0.75 per share for a period of 24 months from the date of the Closing. The gross proceeds received by the Company from the sale of the FT Units will be used to incur “Canadian exploration expenses” that are “flow-through critical mineral mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s properties located in Quebec.
All securities issued in connection with the private placement are subject to a hold period of four months and one day pursuant to applicable securities laws.
Media & Communications
The Company also announces it has agreed to extend its engagement of Rumble Strip Media Inc. (“Rumble”) on a month-to-month basis. Pursuant to the extension, Rumble will provide certain social media, marketing and consulting services to Discovery in consideration for monthly payments of US$150,000 to Rumble. The services provided by Rumble may include investor relations activities within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. For more information concerning Rumble, please see the Company’s news release dated October 12, 2023.
Qualified Person; Historical Estimates
The technical content of this news release has been reviewed and approved by Mike Kilbourne, P. Geo., (OGQ # 1971) who is an independent Qualified Person (QP) as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Discovery Lithium Inc.
Discovery Lithium Inc. is a Canadian exploration company focused on advancing mineral resource projects in North America. The Company holds a 100% interest in 1,675 mineral claims in Serindac Lake and 2,113 mineral claims in Vaubert Lake for a combined total of approximately 164,283 hectares (~405,952 acres) located in the Nunavik region of Northern Quebec, and with a further total of 303 mineral claims comprising approximately 16,392 hectares (~40,505.5 acres) identified as the Route De Nord, Lac Belanger, Lac Ferland and Lac Roberston properties located across the northern and eastern regions of Quebec including the prolific lithium district of the James Bay region. Additionally, the Company is actively advancing its ESN Project for gold exploration in Nevada and evaluating the Koster Dam Project in Central British Columbia through a joint venture with Cariboo Rose Resources.
We seek Safe Harbor.
