Discovery Silver Corp. (TSX:DSC) (OTCQX:DSVSF) is pleased to announce that it has closed its previously announced “marketed” public offering of common shares of the Company for aggregate gross proceeds of approximately C$51.75 million. The Offering was conducted by a syndicate of agents co-led by Clarus Securities Inc. and Cormark Securities Inc., and including BMO Nesbitt Burns Inc., Eight Capital, and PI Financial Corp. and consisted of the sale of 43,125,000 Shares which included the full exercise of the Agents’ option at a price of C$1.20 per Share.

The Company intends to use the net proceeds from the Offering to fund the continued advancement and de-risking of the Cordero Project and for working capital and general corporate purposes.

Tony Makuch, CEO, commented: “We appreciate the support of our existing institutional shareholders and we welcome the new institutional investors who participated in this financing. We are now in a very strong financial position to advance Cordero to a potential construction decision through delivering on key de-risking milestones along with our ongoing feasibility study work.” Mr. Makuch also purchased 1,000,000 Shares pursuant to the Offering.

The Shares issued pursuant to the Offering were qualified for distribution pursuant to the prospectus supplement of the Company dated April 14, 2023 and a short form base shelf prospectus  dated March 23, 2023, filed in each of the provinces and territories of Canada, other than Quebec, and offered and sold elsewhere outside of Canada on a private placement basis. The Prospectus Supplement, Base Shelf Prospectus, and the documents incorporated by reference therein, are available on the Company’s issuer profile on SEDAR at www.sedar.com.

Participation by Mr. Makuch in the Offering was considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Mr. Makuch’s participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Shares acquired by Mr. Makuch was not more than 25% of the Company’s market capitalization. The Company did not file a material change report 21 days in advance of the closing of the Offering as the participation by Mr. Makuch had not been confirmed at that time.

The securities referred to in this news release have not been, nor will they be, registered under the U.S. Securities Act, and may not be offered or sold in the United States absent U.S. registration or an applicable exemption from the U.S. registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States in which such offer, solicitation or sale would be unlawful. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the Company and management, as well as financial statements.

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver deposits. The Preliminary Feasibility Study published in February 2023 demonstrates that Cordero has the potential to be developed into a highly capital-efficient mine that offers the combination of margin, size, and scalability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico.