Discovery Metals closes $12.9M first trance of subscription receipts offering

NEWS RELEASE

July 17, 2017 TSX-V: DSV.H

Discovery Metals Completes First Tranche of Over Subscribed Financing

VANCOUVER, BRITISH COLUMBIA — Discovery Metals Corp. (TSX-V: DSV.H) (“Discovery Metals” or the “Company”) is pleased to report that it has closed the first tranche of its previously announced non brokered private placement, for aggregate gross proceeds of $12,893,500 (the “Offering”). The Offering was upsized from the original $10 million due to strong demand. The Offering involved the issuance of 25,787,000 subscription receipts (the “Subscription Receipts”) at a price of $0.50 per subscription receipt. A second and final tranche of the Offering is expected to close later this week.

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 have a hold period expiring on November 15, 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
Discovery Metals Corp.
Email: sackerman@emprisecapital.com
Telephone: 778-331-8505

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.