District Metals Corp. entered into an agreement to issue 18,200,000 units at a price of CAD 0.22 per unit for gross proceeds CAD 4,004,000 on January 16, 2024. Each Unit shall be comprised of one common share in the capital of the Company and one half of one transferable Common Share purchase warrant. Each whole Warrant shall entitle the holder thereof to acquire one additional Common Share at a price of CAD 0.3 for a period of 36 months from the closing date of the Offering. The transaction is anticipated to close on or around February 1, 2024, or such later date as the Company and the Underwriters may determine. Closing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange. All securities issued under the transaction are subject to a hold period expiring four months and one day from the Closing Date. In consideration for their services, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering and non-transferable compensation options, entitling the Underwriters to purchase, at the Offering Price, that number of Common Shares equal to 6% of the aggregate number of Units issued by the Company under the Offering for a period of 36 months from the Closing Date.

On the same date, the company announced that it has amended the terms of the transaction. The company will now issue 20,500,000 units at an issue price of CAD 0.22 per Unit for the aggregate gross proceeds of CAD 4,510,000. Each Unit shall be comprised of one common share and one half of one transferable Common Share purchase warrant. Each whole Warrant shall entitle the holder thereof to acquire one additional Common Share at a price of CAD 0.30 for a period of 36 months from the closing date of the Offering.