Discovery Energy Metals Corp. Acquires Crystal Lake Copper Property

VANCOUVER, BC — Discovery Energy Metals Corp. (CSE: DEMC) (OTCQB: DEMCF) (FRA: Q3Q0) (“Discovery”) has announced a definitive agreement to acquire a 100% interest in the Crystal Lake Copper Property (“Crystal Lake”) from Zimtu Capital Corp. (“Zimtu”). The property, located in north-central British Columbia, comprises eight mineral claims covering approximately 5,283 hectares, situated 34 kilometers south of Fort Fraser.

Key Highlights of the Acquisition

  • Strategic Location and Infrastructure: The Crystal Lake property is road-accessible and benefits from proximity to key infrastructure, including a CN Rail Line, a BC Hydro electrical transmission line, and a gas line along Highway 16. This strategic location enhances the logistical advantages for potential mining operations.

  • Exploration History: The property has undergone early-stage exploration, including a high-definition magnetic survey conducted between 2009 and 2010. This survey identified a magnetic high indicative of a porphyry intrusion, approximately 2.3 kilometers in diameter, confirmed by field observations.

  • Geological Potential: The property hosts a copper-bearing diorite porphyry stockwork system associated with a regional fault structure. Grab samples from the area have returned up to 0.7% copper, indicating promising geological potential.

Transaction Details

Under the terms of the agreement, Zimtu will receive a total consideration of CDN $200,000 in cash and 2,000,000 common shares of Discovery Energy Metals. An additional CDN $200,000 in cash and 1,000,000 common shares will be payable upon the discovery of a qualifying drill intercept. Zimtu will also retain a 2% net smelter returns (NSR) royalty on the property, with an option for Discovery to buy back 1% of this royalty for CDN $1,000,000 within five years.

Payment Structure

  • Initial Payment: CDN $100,000 in cash and 1,000,000 common shares of Discovery issued upon signing.
  • Subsequent Payment: An additional CDN $100,000 in cash and 1,000,000 common shares six months from signing.
  • Bonus Payment: CDN $200,000 in cash and 1,000,000 common shares payable upon the first drill intercept of 0.5% Cu over 100 meters (or equivalent).

Market Context

Discovery Energy Metals Corp., listed on the Canadian National Stock Exchange, has a market capitalization of 6,030,000 CAD. As of June 15, 2025, the company’s close price was 0.1 CAD, with a 52-week high of 0.14 CAD on August 19, 2024, and a 52-week low of 0.04 CAD on March 5, 2025. The company’s price-to-earnings ratio stands at -0.992884, reflecting its current financial metrics.

This acquisition marks a significant step for Discovery Energy Metals Corp. as it expands its portfolio and explores new opportunities in the copper sector, complementing its existing focus on lithium exploration and extraction.