Discovery Lithium Inc. Closes Acquisition of the Eagle Lake and Whitefish Lake Mining Claims in Northwestern Ontario

Rhea-AI Summary

Discovery Lithium Inc. (CSE:DCLI)(OTCQB:DCLIF) has closed its acquisition of the Eagle Lake and Whitefish Lake mining claims in Northwestern Ontario. The acquisition includes 2,923 mineral claims covering approximately 61,093 hectares (~150,964 acres), located about 350 km northwest of Thunder Bay. As per the sale agreement with Zimtu Capital Corp., Discovery Lithium acquired a 100% interest in the claims for 2,000,000 common shares issued upon closing and a cash payment of $432,778.50 to be paid within 180 days. The company also granted a 1% net smelter returns royalty to the vendor upon achieving commercial production and assumed certain third-party payment obligations related to the claims.

Positive

• Acquisition of 2,923 mineral claims covering 61,093 hectares in Northwestern Ontario
• 100% interest obtained in the Eagle Lake and Whitefish Lake claims
• Potential for lithium discovery and production in a strategic location

Negative

• Cash payment of $432,778.50 due within 180 days of closing
• Issuance of 2,000,000 common shares, potentially diluting existing shareholders
• 1% net smelter returns royalty granted to the vendor upon commercial production
• Assumption of third-party payment obligations related to the claims

VANCOUVER, BC / ACCESSWIRE / September 17, 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, further to its press release dated July 16, 2024, it has closed its previously announced acquisition of two separate packages of mining claims generally known as the Eagle Lake claims and the Whitefish Lake claims, respectively (together, the "Claims"), located approximately 350 km northwest of Thunder Bay, Ontario (the "Acquisition"). The Claims are comprised of 2,923 mineral claims covering approximately 61,093 hectares (~150,964 acres) in Northwestern Ontario.

Terms of the Acquisition

Pursuant to the sale agreement dated July 15, 2024 among the Company and Zimtu Capital Corp. (the "Vendor"), the Company acquired a 100% interest in the Claims for the following consideration:

• an aggregate of 2,000,000 common shares in the capital of the Company that were issued to the Vendor upon closing of the Acquisition ("Closing"); and

• a cash payment of $432,778.50 that will be paid to the Vendor within 180 days following Closing.

As additional consideration for the Acquisition, the Company granted to the Vendor a 1% net smelter returns royalty interest in the future minerals produced from the Claims upon achieving commercial production and assumed the Vendor's obligation with respect to certain payments owed to a third party in connection with the Vendor's acquisition of the Claims on July 12, 2023.

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

On behalf of the Board of Directors,

Mike Hodge

President & Chief Executive Officer

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. 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.

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 timing of the payment of the cash consideration. 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 mining claims did Discovery Lithium (DCLIF) acquire in Northwestern Ontario?

Discovery Lithium acquired the Eagle Lake and Whitefish Lake mining claims, comprising 2,923 mineral claims covering approximately 61,093 hectares in Northwestern Ontario, about 350 km northwest of Thunder Bay.

What was the purchase price for the mining claims acquired by Discovery Lithium (DCLIF)?

The purchase price included 2,000,000 common shares issued upon closing and a cash payment of $432,778.50 to be paid within 180 days after closing. Additionally, a 1% net smelter returns royalty was granted to the vendor upon achieving commercial production.

When did Discovery Lithium (DCLIF) close the acquisition of the Eagle Lake and Whitefish Lake claims?

Discovery Lithium closed the acquisition of the Eagle Lake and Whitefish Lake claims on September 17, 2024, as announced in their press release.

What is the size of the mining claims acquired by Discovery Lithium (DCLIF) in Northwestern Ontario?

The acquired mining claims cover approximately 61,093 hectares (equivalent to about 150,964 acres) in Northwestern Ontario.