Discovery Silver - President and CEO, Taj Singh.
President and CEO, Taj Singh.
Source: Stock Day Media.
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Discovery Metals (TSXV:DSV) is set to raise up to C$25 million, including a $10 million investment from Canadian billionaire, Eric Sprott
  • The company plans to issue approximately 45 million units, each at a price of $0.55
  • Each unit will consist of one common share and one common share purchase warrant, exercisable at a price of $0.77
  • The proceeds will be used to fund ongoing exploration efforts at Discovery’s Cordero and Coahuila projects
  • Discovery Metals (DSV) is currently up 3.03 per cent, with shares trading at $0.68 and a market cap of $143.85 million

Discovery Metals (TSXV:DSV) is set to raise up to C$25 million in a non-brokered private placement.

Headquartered in Toronto, the company is focused on advancing historic mining districts in Mexico. These include the wholly owned Cordero silver project in Chihuahua State and a silver-zinc-lead land package of approximately 150,000 hectares in Coahuila State.

Discovery plans to issue approximately 45 million units, each at a price of $0.55. These units will consist of one common share and one common share purchase warrant.

Each warrant will entitle the holder to acquire an additional common share at a price of $0.77, exercisable for a period of two years from the date of issuance.

Notably, the placement includes a $10 million investment from Canadian billionaire, Eric Sprott, which will result in the issuance of approximately 18.1 million units. Assuming the placement closes on a fully-subscribed basis, Eric will hold 24.4 per cent of Discovery’s total issued and outstanding shares.

The proceeds from the placement will be used to fund the ongoing exploration efforts at Discovery’s Cordero and Coahuila projects. A portion will also be used for general working capital purposes.

Taj Singh, President and CEO of Discovery Metals, said the strong investment interest is a reflection of the exposure and leverage that the company’s Cordero project provides to a rising silver price.

“It is also indicative of the very favourable investment case for silver considering the current gold-silver ratio of 107:1 is markedly higher than the 50-year average of approximately 60:1.

“Upon completion of this financing Discovery will have over $40 million of cash on its balance sheet – this positions Discovery as one of the best financed silver exploration companies in the industry and provides the firepower to aggressively advance Cordero and to accelerate our exploration efforts on the surrounding regional property package,” he said. 

Discovery Metals (DSV) is currently up 3.03 per cent, with shares trading for $0.68 at 2:49pm EDT.

More From The Market Herald
Desert Mountain Energy - CEO, Robert Rohlfing.

" Desert Mountain Energy (TSXV:DME) completes testing at McCauley Helium Processing Facility

Desert Mountain (DME) has completed testing at its McCauley Helium Processing Facility in Arizona.

" StrategX (CSE:STGX) confirms new discovery at Nagvaak project

StrategX Elements (STGX) finds new energy transition metals from drill hole 14, in target area one of the Nagvaak project in Nunavut.

" Golden Goliath (TSXV:GNG) completes drill holes at its Wish Ore Property

Golden Goliath Resources (GNG) has completed drilling holes at its Wish Ore Project.

" Freegold (TSX:FVL) intersects high-grade gold

Freegold Ventures Limited (FVL) shared the gold results from an additional seven holes done for its drill program on the Golden Summit Project.