Discovery Metals Corp.
NEX BOARD : DSV.H
TSX VENTURE : DSV.H

Discovery Metals Corp.

July 19, 2017 17:54 ET

Discovery Metals Closes Final Tranche to Complete $15.6 Million Over-Subscribed Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 19, 2017) - Discovery Metals Corp. (TSX VENTURE:DSV.H)(NEX:DSV.H) ("Discovery Metals" or the "Company") is pleased to report that it has closed the second and final tranche (the "Second Tranche") of its previously announced non-brokered private placement (the "Offering").

As previously announced, an aggregate of 25,787,000 subscription receipts (the "Subscription Receipts") at a price of $0.50 per subscription receipt were issued in the first tranche for gross proceeds of $12,893,500. The Company has now closed the Second Tranche of the Offering for additional gross proceeds of $2,725,000, with the issuance of 5,450,000 Subscription Receipts. Aggregate gross proceeds from both tranches of the Offering were $15,618,500, through the issuance of 31,237,000 Subscription Receipts.

The proceeds of the Offering are being held in escrow, pending the Company receiving all applicable regulatory approvals and completing its proposed Change of Business transaction (the "Transaction"), as described in the Company's news releases dated May 1, 2017, June 1, 2017 and June 14, 2017. If the Transaction is not completed on or before August 18, 2017, the Offering proceeds will be returned to the subscribers.

Upon satisfaction of the escrow conditions, each Subscription Receipt will automatically convert into one unit of the Company for no additional consideration. Each Unit will consist of one common share and one share purchase warrant, with each share purchase warrant entitling the holder to acquire one additional common share at a price of $1.00 per share for a period of 24 months from the date the warrants are issued. The securities issued in the Second Tranche have a hold period expiring on November 20, 2017.

Following conversion of the Subscription Receipts, the Company will pay certain agreed upon finder's fees.

The proceeds of the Offering will be used to fund the Company's proposed phase one exploration program on the Company's flagship Puerto Rico Property, as further described in the Company's news release dated May 1, 2017. The balance of the proceeds will be used to fund preliminary exploration work on the other properties recently optioned by the Company as detailed in the Company's news releases dated May 1, 2017, June 1, 2017, and June 14, 2017, and for general working capital purposes.

Completion of the Transaction remains subject to TSX Venture Exchange (the "Exchange") approval. Trading in the Company's common shares will remain halted pending further filings with the Exchange. The Company is working diligently to complete the remaining filings with the Exchange, with a view to completing the proposed transaction in short order.

For further information, contact Scott Ackerman @ sackerman@emprisecapital.com.

On Behalf of the Board of Directors of:
DISCOVERY METALS CORP.

Scott Ackerman
Director

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.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under applicable laws.

About Discovery Metals
Discovery Metals is focused on discovering and advancing high grade polymetallic deposits in a recently assembled land package of approximately 300,000 hectares over a large and historic mining district in northern Coahuila State, Mexico. The portfolio of seven key properties, all with shallow high grade silver-zinc-lead mineralization, is situated in a world class Carbonate Replacement Deposit (CRD) belt that stretches from SE Arizona to central Mexico. The land holdings contain numerous historical direct-ship ore workings with over 4,000 m of underground development. No modern exploration or exploration drill testing has been carried out on the properties.

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