News Discovery Divests Non-Core Exploration Property
TORONTO, Sept. 27, 2021 (GLOBE NEWSWIRE) -- Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) is pleased to announce that it has entered into an arm's length assignment and assumption agreement (the “Agreement”) with Monumental Gold Ltd. (“Monumental”) (TSX-V: MGLD) dated September 22, 2021, whereby Discovery has agreed to transfer and assign its rights and obligations under the option agreement on the Jemi Rare Earth Property (the “Property” and the “Jemi Option Agreement”), located in Coahuila, Mexico, to Monumental.
Under the terms of the Agreement, Monumental will assume the Jemi Option Agreement and in return will issue to Discovery that number of common shares of Monumental that would result in Discovery holding 9.9% of the issued and outstanding common shares of Monumental (“Payment Shares”) on a non-diluted basis. The Payment Shares are subject to a statutory hold period of four months and a day from the date of issuance and a 12-month voluntary hold period from the date of issuance. In addition, subject to the exercise of the option to acquire the Property pursuant to the Agreement, Discovery would retain a 1.5% net smelter returns royalty payable upon the commercial production of the Property in accordance with the terms set out in the Agreement and pursuant to a separate royalty agreement between Discovery and Monumental’s Mexican subsidiaries.
The divestiture of the Property is consistent with the Company’s strategy of streamlining its property portfolio in order to focus on its flagship Cordero project in Chihuahua, Mexico. The transaction also provides Discovery with investment exposure to an early-stage exploration property with known showings of rare earth elements.
The transfer of the Jemi Option Agreement to Monumental is subject to the approval of the TSX Venture Exchange. For more details, please see Monumental’s news release at:
https://www.newswire.ca/news-releases/monumental-gold-corp-enters-into-assignment-and-assumption-agreement-with-discovery-silver-corp-to-acquire-jemi-rare-earth-elements-project-869598536.html
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA,
President, Chief Executive Officer and Director
For further information contact:
Forbes Gemmell, CFA ..............Bluetick