Ontario - Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF) ('Discovery' or the 'Company') is pleased to announce its operating and financial results for the three months ended March 31, 2020.
All amounts are presented in Canadian dollars ('CAD') unless otherwise stated.
Our Company is focused on advancing a portfolio of silver projects in historic mining districts in northern Mexico, including our flagship Cordero project in Chihuahua State ('Cordero' or the 'Project'), as well as the Puerto Rico, Minerva and Monclova projects in Coahuila State.
In February 2020 we were named to the TSX Venture Exchange's 2020 Venture 50 in recognition of our share price appreciation, market capitalization growth, and trading volume growth over the past year.
In March 2020 we temporarily suspended all exploration activities at our Mexican operations due to the increased health and safety risks associated with the growing number of COVID-19 cases in the country. We have put in place business continuity plans so that exploration activity can quickly ramp up once it is deemed safe to do so.
In April 2020 we announced the divestiture of our non-core Congress property located in British Columbia, to Talisker Resources Ltd. ('Talisker'). Under the terms of the purchase agreement, Talisker issued 1,000,000 common shares to our Company in return for 100% ownership of Congress.
On May 18, 2020, we announced a $25 million private placement that included a $10 million investment from Mr. Eric Sprott. This financing is expected to close in early June. Support for this placement is indicative of the strong investment interest in our Company and the exposure and leverage that our Cordero project provides to a rising silver price. Upon completion, we will have over $40 million of cash on our balance sheet - this positions us as one of the best financed silver exploration companies in the industry.
LOOKING AHEAD
Discovery has transformed itself over the last 12 months and we believe we are now in the best position since the Company's formation to benefit from a rising silver price. Through the acquisition of our Cordero project in August 2019 we now have 100% ownership of a very large silver endowment. Post-acquisition we have been actively adding value through drilling with highly encouraging results reported from our Phase 1 drill program. Upon completion of the recently announced financing, we will have a cash balance of over $40 million. Our balance sheet has never been stronger and moving forward we have the firepower to aggressively advance Cordero and to accelerate our exploration efforts on the surrounding regional property package.
On March 31, 2020, we announced the temporary suspension of exploration activity in response to COVID-19. We are using this period to evaluate the substantial amount of data collected to-date to refine our drill targets. We still have assays pending from 16 holes completed prior to the shutdown and we look forward to releasing these holes in the coming weeks. We have also been busy putting in place business continuity plans so that we can ramp up our drilling activities in an efficient and systematic fashion once it is deemed safe to do so.
We look forward to providing further details on the progress we have made to our shareholders at our upcoming Annual General Meeting ('AGM'). The AGM will be held via conference call on June 26, 2020.
About Discovery
Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF) is a Canadian exploration and development company headquartered in Toronto, Canada, and focused on historic mining districts in Mexico. Discovery's flagship is its 100%-owned Cordero silver project in Chihuahua State, Mexico. The 35,000-hectare property covers a large district that hosts the announced resource as well as numerous exploration targets for bulk tonnage diatreme-hosted, porphyry-style, and carbonate replacement deposits.
Contact:
Forbes Gemmell
Email: forbes.gemmell@dsvmetals.com
Cautionary Note Regarding Forward-Looking Statements
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 Discovery 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. There can be no assurance that the Private Placement will close on the announced terms. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.
DISCOVERY SILVER CORP. 
