Discovery Lithium Announces Non-Brokered Private Placement Financing

Rhea-AI Summary

Discovery Lithium Inc. (CSE:DCLI, OTCQB:DCLIF) has announced a non-brokered private placement to raise up to $1,350,000. The company plans to issue up to 18,000,000 units at $0.075 per unit. Each unit consists of one common share and one warrant, exercisable at $0.10 per share for 24 months. This offering replaces the previously announced July 19, 2024 offering. Proceeds will be used for general corporate purposes and working capital. The closing is subject to regulatory approvals, and securities issued will have a four-month hold period. Finder's fees may be paid in connection with the offering.

Positive

• Potential to raise up to $1,350,000 in capital
• Warrant exercise price ($0.10) represents a 33% premium to unit price
• 24-month warrant term provides extended funding opportunity

Negative

• Potential dilution for existing shareholders
• Unit price of $0.075 may indicate low market valuation
• Cancellation of previously announced offering may suggest changing financial needs

VANCOUVER, BC / ACCESSWIRE / August 28, 2024 / Discovery Lithium Inc. (CSE:DCLI)(OTCQB:DCLIF)(FRA:Q3Q0)(WKN:A3EFKA) (the "Company," or "Discovery Lithium"), a Canadian exploration company focused on advancing domestic energy freedom through regional lithium discovery, is pleased to announce that it intends to complete a non-brokered private placement of up to 18,000,000 units of the Company ("Units") at a price of $0.075 per Unit for gross proceeds of up to $1,350,000 (the "Offering"). Each Unit will be comprised of one common share of the Company and one share purchase warrant, with each warrant exercisable to acquire one common share of the Company at a price of $0.10 per share for a period of 24 months from the date of issuance. In connection with the launch of the Offering, the Company advises that it will no longer proceed with the offering contemplated by the Company's announcement of July 19, 2024.

The gross proceeds from the Offering are expected to be used for general corporate purposes and working capital. The closing of the Offering is subject to certain conditions including, but not limited to, receipt of all necessary regulatory approvals. The Company may pay finder's fees in connection with the Offering. All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day pursuant to applicable securities law.

For more information please visit: www.discoverylithium.com.

About Discovery Lithium (CSE: DCLI) (OTCQB: DCLIF) (FRA: Q3Q0) (WKN: A3EFKA)

Discovery Lithium Inc. is a Canadian exploration company focused on advancing mineral resource projects in North America. The Company holds a 100% interest in 1,675 mineral claims in Serindac Lake and 2,113 mineral claims in Vaubert Lake for a combined total of approximately 164,283 hectares (~405,952 acres) located in the Nunavik region of Northern Quebec, and with a further total of 303 mineral claims comprising approximately 16,392 hectares (~40,505.5 acres) identified as the Route De Nord, Lac Belanger, Lac Ferland and Lac Roberston properties located across the northern and eastern regions of Québec including the prolific lithium district of the James Bay region. The Company has entered into an agreement to acquire a 100% interest in the Eagle Lake claims and the Whitefish Lake claims, respectively, comprised of 2,923 mineral claims covering approximately 61,093 hectares (~150,964 acres) in Northwestern Ontario. Additionally, the Company is actively advancing its ESN Project for gold exploration in Nevada and evaluating the Koster Dam Project in Central British Columbia through a joint venture with Cariboo Rose Resources. Find out more at: www.discoverylithium.com and follow us on X (formerly twitter), Facebook, and LinkedIn.

On behalf of the Board of Directors,
Mike Hodge
Chief Executive Officer

The Company would like to welcome investors to visit our website and join our mailing list at www.discoverylithium.com/news-alerts/. By subscribing you will stay up to date with the latest news releases and advancements within our company.

For further information, please contact:

Discovery Lithium Inc.
1450 - 789 West Pender Street,
Vancouver, BC Canada V6C 1H2
Telephone: +1 (778) 868-2226
Email: info@discoverylithium.com
Web: www.discoverylithium.com

Caution Regarding Forward-Looking Information

Certain statements contained in this news release may constitute "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "potential", "indicative" and similar expressions. Forward-looking information in this news release includes, but is not limited to, the Offering, including the timing, terms and anticipated use of proceeds from the Offering, the timely receipt of all necessary approvals for the Offering, and other statements regarding the Company's future business plans and objectives. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of risks and uncertainties inherent in the exploration and development of mineral properties, fluctuations in commodity prices, counterparty risk, market conditions, regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, changes to the Company's strategic growth plans, and other factors, many of which are beyond the control of the Company. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

Neither the Canadian Securities Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

SOURCE: Discovery Lithium Inc.

View the original press release on accesswire.com

FAQ

What is the size and price of Discovery Lithium's (DCLIF) new private placement offering?

Discovery Lithium (DCLIF) is offering up to 18,000,000 units at $0.075 per unit, aiming to raise up to $1,350,000.

What are the terms of the warrants in Discovery Lithium's (DCLIF) August 2024 private placement?

Each warrant in the offering allows the purchase of one common share at $0.10 for 24 months from the issuance date.

How does Discovery Lithium (DCLIF) plan to use the proceeds from its August 2024 private placement?

Discovery Lithium plans to use the gross proceeds from the offering for general corporate purposes and working capital.

What regulatory conditions apply to Discovery Lithium's (DCLIF) August 2024 private placement?

The offering is subject to regulatory approvals, and securities issued will have a statutory hold period of four months and one day.