Discovery Energy Metals to Acquire 100% of Crystal Lake Copper Property in British Columbia

Rhea-AI Summary

Discovery Energy Metals Corp. has entered into a definitive agreement to acquire 100% of the Crystal Lake Copper Property in British Columbia from Zimtu Capital Corp. The property spans 5,283 hectares across eight mineral claims, located 34km south of Fort Fraser. The acquisition terms include CDN $200,000 in cash payments, 2 million common shares, and a 2% NSR royalty. The property features a 2.3km diameter porphyry intrusion identified by a 2010 magnetic survey, with historic grab samples showing up to 0.7% copper with elevated gold and silver values. The site benefits from excellent infrastructure including road access, CN Rail Line, and power transmission lines. Additionally, Discovery announced a private placement offering of up to 10 million units at $0.10 per unit to raise $1 million for working capital and exploration.

Positive

• Strategic acquisition of a promising copper property with historical exploration data showing potential for porphyry copper mineralization
• Excellent infrastructure access including roads, rail, power, and gas lines reduces development costs
• Property location near significant discoveries including Artemis Gold's Blackwater Mine
• Historic grab samples showed promising copper values up to 0.7% with gold and silver presence
• Company securing $1 million in additional funding through private placement for exploration

Negative

• Property is still in early exploration stage with no defined resource
• Significant future capital requirements for exploration and development
• Acquisition includes substantial share dilution through 2 million share issuance
• Additional potential dilution from $1 million private placement offering

--Historic magnetic survey in 2010 outlined ~2.3km diameter porphyry intrusion

VANCOUVER, BC / ACCESS Newswire / June 17, 2025 / Discovery Energy Metals Corp. (CSE:DEMC)(OTCQB:DEMCF)(FRA:Q3Q0) ("Discovery" or the "Company") is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Zimtu Capital Corp. ("Zimtu" or the "Vendor") to acquire a 100% interest in the Crystal Lake Copper Property ("Crystal Lake" or the "Property"), located in north-central British Columbia.

The Crystal Lake Copper Property is comprised of eight mineral claims totaling approximately 5,283 hectares and is situated 34 kilometres south of Fort Fraser, British Columbia.

Highlights

• Excellent Location/Infrastructure: Road-accessible and located near key infrastructure, including a CN Rail Line, BC Hydro electrical transmission line, and a gas line along Highway 16 (Figure 1).

• Exploration History: Early-stage exploration programs include a high-definition magnetic survey in 2009-2010 covering ~90% of the Property which outlined a magnetic high indicative of a porphyry intrusion (as confirmed by field observations) measuring ~2.3km in diameter² (Figure 2).

• Geological Potential: A copper-bearing diorite porphyry stockwork system associated with a regional fault structure and grab samples have returned up to 0.7% Cu, with elevated gold and silver values².

• Exploration Upside: Soil geochemistry confirmed a north-south copper anomaly, with alteration patterns consistent with the upper levels of a porphyry copper system. The main mineralized zone is likely preserved at depth, making the Project a compelling grassroots exploration target¹.

"We are excited to secure the Crystal Lake Copper Property, which provides the Company with another promising grassroots copper opportunity," said Mike Hodge, CEO of Discovery. "We believe the combination of scale, geological setting, and highly valued inherited historical work makes this a strong candidate for future exploration success."

Property Overview

The Property is road accessible and located proximal to a CN Rail Line, BC Hydro main electrical transmission line, and a gas transmission line parallel to Highway 16 (Figure 1). Prince George, Fraser Lake, and Vanderhoof provide accommodations, food and mining exploration supplies for the Property.

Crystal Lake has undergone several early exploration programs over the recent years with the most notable being carried out by Entrée Gold in 2009-2010 where a high-definition helicopter-borne AeroTEM electromagnetic and magnetic geophysical survey was flown over ~90% of the Property which outlined a magnetic porphyry intrusion measuring ~2.3km in diameter² (Figure 2). This work was followed up by Zimtu Capital Corp.'s geochemical sampling and petrography which was carried out between 2020-2024.

The region itself has had many significant discoveries in the past and hosts many developmental projects such as Artemis Gold's Blackwater Mine, located just ~50km to the Southwest. The Project itself remains largely underexplored, presenting significant upside potential for a grassroots discovery.

During the 2009-2010 Entrée Gold exploration programs, a zone of copper-bearing diorite porphyry stockwork was identified on the Crystal Lake Property, trending north-south from Holler Lake to Bennett Lake and associated with a regional fault structure and coincident with the magnetic anomaly. Geochemical results and Rb/Sr ratios suggest increasing potassic alteration along this trend, consistent with the upper levels of a porphyry copper system. High-grade grab samples from the Raven showing returned values up to 0.7% copper, with elevated gold (up to 57.3 ppb) and silver (>100 ppm)².

Further south, around Veronica Lake, copper values ranging from 200 to 900 ppm are associated with propylitic alteration of the diorite. A small soil geochemical survey confirmed that B-horizon sampling is effective, highlighting a north-south copper anomaly that aligns with the structural trend².

The Property came with a highly valued historic geophysical survey that covers ~90% of the Property. The geological framework paired with favourable geophysical responses identified by this survey indicates that the Property has high prospectivity for hosting a base and/or precious metals system⁴.

Figure 1: Crystal Lake Property Regional Location (After Entrée Gold, 2010).

Figure 2: Localized map of Crystal Lake with Total Magnetic Intensity underlay from 2010 airborne geophysical program. (Red/Hot= Mag High, Blue/Cold=Mag Low) (Zimtu Capital, 2022).

Geological Overview

The Crystal Lake Property is located in a geologically complex region shaped by both tectonic activity and glaciation. The area is underlain by intrusive igneous rocks such as diorite and quartz diorite and is marked by a network of bedrock faults and joints, many of which are overprinted by glacial features. Extensive glaciation has left behind prominent landforms-including drumlinoid ridges and crag-and-tail features aligned with historic ice flow-along with till deposits and frost-heaved boulders. Structural geology is dominated by major lineaments and fault zones, including a northeast-trending fault north of the Property and a significant east-northeast fault scarp extending from Lily Pad Lake to Veronica Lake.

A regional magnetic high, interpreted as the signature of a porphyry intrusion, suggests the presence of an intermediate intrusive body and validates the area's potential for mineralization. Together, these geological features indicate a high prospectivity for mineral exploration on the Crystal Lake Property³.

Exploration at the Crystal Lake Property has identified copper-bearing mineralization hosted in diorite, spatially related to a north-south fault system extending from Holler Lake through Veronica Lake to the Raven Showing. Mineralization includes pyrite, chalcopyrite, bornite, malachite, azurite, and chalcocite, with magnetite pervasive in the hornblende-diorite host rock. At the Kingfisher showing, sulphides occur in sheared diorite layers dipping into the lake, while Veronica Lake features fracture-controlled stockwork veinlets and disseminated sulphides, with grab samples yielding up to 962 ppm Cu. The Raven Showing returned the highest copper values, with 7,577 ppm Cu from a mineralized quartz breccia hosting chalcocite and secondary copper minerals^. Alteration is dominantly propylitic, marked by epidote, sericite, chlorite, and magnetite, consistent with porphyry-style systems².

Historic exploration targeted porphyry copper-molybdenum potential, identifying a central magnetic high and high-grade copper-silver-gold samples at surface. The 2022 program aimed to verify past work, assess access, and map surficial geology, confirming mineralized diorite at key showings and supporting further exploration planning⁴

National Instrument 43-101 Disclosure

Nicholas Rodway, P.Geo, (EGBC Licence# 46541) (Permit to Practice# 100359) is an independent consultant of the Company, and qualified person as defined by National Instrument 43-101- Standards of Disclosure for Mineral Projects. Mr. Rodway has reviewed and approved the technical content in this release.

Acquisition Terms

Pursuant to the Agreement, Discovery will acquire a 100% interest in the Crystal Lake Property under the following terms:

• Cash Consideration: CDN $100,000 upon signing and an additional CDN $100,000 six months from signing;

• Share Consideration: 1,000,000 common shares issued upon signing and 1,000,000 common shares six months from signing;

• Bonus Consideration: An additional CDN $200,000 in cash and 1,000,000 common shares payable upon the discovery of a drill intercept exceeding 0.5% copper over 100 metres (or equivalent grade/interval combination); and

• Royalty: A 2% Net Smelter Returns (NSR) royalty will be granted to the Vendor, with a buyback right of 1% for CDN $1,000,000 exercisable within five years.

All share issuances are subject to applicable hold periods and CSE approval.

Financing Update

Discovery is also pleased to announce that it intends to complete a non-brokered private placement of up to 10,000,000 units of the Company ("Units") at a price of $0.10 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). Each Unit will be comprised of one common share of the Company and one transferable share purchase warrant, with each warrant exercisable to acquire one common share of the Company at a price of $0.15 per share for a period of 24 months from the date of issuance.

The gross proceeds from the Offering are expected to be used for general working capital and property exploration. 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.

Marketing Agreement

Discovery is also pleased to announce it has signed an agreement with Zimtu, whereby Zimtu will provide marketing services under its Zimtu ADVANTAGE program, effective June 1, 2025 for an initial term of 12 months at a cost of $12,500 per month (the "Zimtu Agreement"). The program is designed to provide strategic marketing support, investor engagement, and public awareness initiatives. Services include investor presentations, email marketing, lead generation campaigns, blog posts, digital campaigns, social media management, Rockstone Research reports & distribution, video news releases and related marketing & awareness activities. Zimtu is based in Vancouver, at Suite 1450 - 789 West Pender Street, Vancouver, BC V6C 1H2. Zimtu's compensation does not include securities of the Company. Zimtu currently owns 2,200,000 shares and 200,000 common share purchase warrants of the Company, and is a Non-Arm's Length Party to the Company (as that term is defined in the policies of the TSX Venture Exchange) by virtue of the two companies sharing common officers (Ms. Jody Bellefleur is CFO of each of Zimtu and the Company). The Company also notes that its director Colton Griffith is the Marketing Manager of Zimtu, and is principally responsible for the administration of the Zimtu ADVANTAGE program. Accordingly, Mr. Griffith abstained from the resolutions of the Company approving the Zimtu Agreement.

References

¹(Entrée Gold, 2009), Prospecting and Geochemical Report ARIS #31252
²(Entrée Gold, 2010), Prospecting, Geochemical, Geophysical Report, ARIS # 31727
³(Zimtu Capital Corp, 2020), Prospecting, Geochemical and Petrography Report, ARIS N/A
⁴(Zimtu Capital Corp, 2024) Prospecting Report, ARIS N/A

About Discovery Energy Metals Corp. (CSE:DEMC)(OTCQB:DEMCF)(FRA:Q3Q0) (WKN: A3EFKA)

Discovery Energy Metals Corp. 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.discoveryenergymetals.com and follow us on X (formerly twitter), and LinkedIn.

On behalf of the Board of Directors,

~Mike Hodge~

Mike Hodge
President & CEO

For further information, please contact:
Discovery Energy Metals Corp.
1450 - 789 West Pender Street,
Vancouver, BC Canada V6C 1H2

Telephone: +1 (604) 681-1568
Email: info@discoveryenergymetals.com
Web: www.discoveryenergymetals.com

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information in this news release includes, without limitation, information in respect of the exploration potential of the Project, the anticipated completion of the acquisition contemplated by the Agreement, the anticipated completion of the Offering and use of proceeds in respect thereof. 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 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.

SOURCE: Discovery Energy Metals Corp.

View the original press release on ACCESS Newswire

FAQ

What is the size and location of Discovery Energy Metals' Crystal Lake Copper Property?

The Crystal Lake Copper Property consists of eight mineral claims totaling 5,283 hectares and is located 34 kilometres south of Fort Fraser, British Columbia.

What are the key terms of DEMCF's Crystal Lake acquisition?

Discovery will pay CDN $200,000 in cash, issue 2 million common shares, grant a 2% NSR royalty, and potentially pay additional bonuses upon significant copper discovery.

What are the significant exploration findings at the Crystal Lake Property?

A 2010 magnetic survey identified a 2.3km diameter porphyry intrusion, with grab samples showing up to 0.7% copper and elevated gold and silver values.

How is Discovery Energy Metals (DEMCF) financing the Crystal Lake development?

The company announced a private placement offering of up to 10 million units at $0.10 per unit to raise $1 million for working capital and property exploration.

What infrastructure advantages does the Crystal Lake Property have?

The property is road-accessible and located near CN Rail Line, BC Hydro electrical transmission line, and a gas line along Highway 16.