Discovery Ventures Inc.
TSX VENTURE : DVN

Discovery Ventures Inc.

March 03, 2014 09:30 ET

Discovery Ventures Announces Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 3, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN OR INTO THE UNITED STATES

Discovery Ventures Inc. ("Discovery" or the "Company") (TSX VENTURE:DVN) is pleased to announce it intends to undertake a brokered private placement financing of up to 20,000,000 units at a price of 15 cents per unit for gross proceeds of up to $3 million. Each unit consists of one common share of the Company and one-half of one share purchase warrant. One warrant entitles the holder thereof to purchase one additional share at a price of 30 cents per share for a period of three years from closing of the financing.

All securities issued in the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange. BayFront Capital Partners Ltd. is acting as the sole agent in connection with this financing.

Proceeds of the financing are anticipated to be used to advance the Company's WillaMAX project, including further payments for the acquisition of FortyTwo Metals Inc., and all of the facilities, resources, permits, bonds and tax losses associated with the MAX Mine site. Discovery also intends to complete its preliminary economic assessment (PEA) and advance production permitting and other related work for the WillaMAX project. The financing is intended to meet one of the conditions in the term sheet for the Company's debt facility announced on February 24, 2014.

Akash Patel, President and CEO of Discovery, commented, "We believe that this financing and the accompanying debt facility will give us the financial strength to rapidly advance our WillaMAX project through the planned acquisitions, permitting and development."

None of the securities issued in the financing will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

If you would like to be added to Discovery's news distribution list, please send your email address to info@discoveryventuresinc.com or visit our website located at www.discoveryventuresinc.com.

Akash Patel, President and Director, Discovery Ventures Inc.

Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Discovery, such as statements that Discovery intends to undertake a brokered private placement financing, the anticipated use of proceeds and the achievement of milestones with the proceeds of the financing. There are numerous risks and uncertainties that could cause actual results and Discovery's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the mineral exploration industry in general; (iii) the inability of Discovery to complete the Private Placement or the related debt facility; or (iv) the TSXV not approving the Private Placement. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Discovery does not intend to update these forward-looking statements.

Contact Information

  • Discovery Ventures Inc.
    (604)-818-1706

    Investor Relations
    Ron Birch
    (250)-545-0383
    Toll free: 1-800-910-7711