Vancouver, British Columbia--(Newsfile Corp. - December 23, 2024) - District Metals Corp. (TSXV: DMX) (OTCQB: DMXCF) (FSE: DFPP); ("District" or the "Company") is pleased to announce that the Swedish Ministry of Climate and Enterprise issued a press release on December 20, 2024 and made public the results of the inquiry into lifting the uranium moratorium that commenced on February 15, 2024. The press release further states that the purpose of the inquiry was to assess and provide proposals necessary to allow for the resumption of uranium extraction in Sweden.
In its press release the Swedish Government notably reiterated an intention to remove the ban on uranium mining that was introduced in 2018, and to restore the legislation as it was before the ban was introduced. Supportive quotes were provided by each of the Liberal, Christian Democrats, Sweden Democrats, and Moderate political parties. The full press release can be found here, and readers are encouraged to read the announcement in its entirety.
A rapid inquiry into lifting the uranium moratorium was completed during 2024, and the results of this inquiry can be found here. A summary of the key outcomes from this inquiry include:
The current ban in the Environmental code is to be overturned, and it shall be possible to mine uranium in Sweden.
Uranium will be regulated as a concession mineral within the Swedish Minerals Act.
In addition, the inquiry into lifting the uranium moratorium outlines these next steps:
A written consultation on the inquiry will be conducted until March 20, 2025.
A legislative proposal is to be brought to Parliament after March 20, 2025.
The legislative changes are proposed to go into effect by January 1, 2026.
Garrett Ainsworth, CEO of District, commented: "We are extremely pleased with this official statement from the Swedish Government and view it as a significant step toward lifting the current uranium mining moratorium in Sweden. The long-awaited results from the inquiry are highly encouraging and align with our proposed exploration plans to begin work on our Swedish uranium polymetallic properties in 2025. The Swedish Government has clearly expressed its intention to remove the ban on uranium mining. District is fully prepared for this proposed transformational change to legislation, supported by our strong portfolio of properties in Sweden."
Sweden's current government has indicated strong support for nuclear power and energy security. The governing coalition formed in October 2022 has indicated support for expanding nuclear power in Sweden. There are currently six operating nuclear reactors in Sweden that supply about 29% of the country's electricity, and the government has called for the possible restart of Ringhals reactor units 1 and 2, as well as preparation for the construction of new reactors.
The moratorium on exploration and mining of uranium in Sweden came into effect on August 1, 2018. On February 15, 2024, a rapid government investigation into lifting the uranium moratorium commenced with the results of this inquiry made publicly available on December 20, 2024. District believes that the aforementioned press release from the Ministry of Climate and Enterprise is very positive for Sweden and a low-carbon Europe.
Technical Information
All scientific and technical information in this news release has been prepared by, or approved by Garrett Ainsworth, PGeo, President and CEO of the Company. Mr. Ainsworth is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
The data disclosed in this news release is related to historical results. District has not undertaken any independent investigation of the sampling nor has it independently analyzed the results of the historical exploration work in order to verify the results. District considers these historical results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.
Mr. Ainsworth has not verified any of the information regarding any of the properties or projects referred to herein other than District's properties. Mineralization on any other properties referred to herein is not necessarily indicative of mineralization on District's properties.
About District Metals Corp.
District Metals Corp. is led by industry professionals with a track record of success in the mining industry. The Company's mandate is to seek out, explore, and develop prospective mineral properties through a disciplined science-based approach to create shareholder value and benefit other stakeholders.
District is a polymetallic exploration and development company focused on the Viken and Tomtebo Properties in Sweden. The Viken Property covers 100% of the uranium-vanadium Viken Deposit, which is an asset with substantial exploration and development expenditures that resulted in the definition of large historic polymetallic resource estimates in 2010 and 2014.
The advanced exploration stage Tomtebo Property is located in the Bergslagen Mining District of south-central Sweden and is situated between the historic Falun Mine and Boliden's Garpenberg Mine that are located 25 km to the northwest and southeast, respectively. Two historic polymetallic mines and numerous polymetallic showings are located on the Tomtebo Property along an approximate 17 km trend that exhibits similar geology, structure, alteration and VMS/SedEx style mineralization as other significant mines within the district.
For further information on the Tomtebo Property, please see the technical report entitled "NI 43-101 Update Technical Report on the Tomtebo Project, Bergslagen Region of Sweden" dated effective October 15, 2020 and amended and restated on February 26, 2021, which is available on SEDAR+ at www.sedarplus.ca.
On Behalf of the Board of Directors
"Garrett Ainsworth"
President and Chief Executive Officer (604) 288-4430
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be considered "forward-looking information" with respect to the Company within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved" and any similar expressions. In addition, any statements that refer to expectations, predictions, indications, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward-looking information in this news release relating to the Company include, among other things statements relating to: the Swedish Government's lifting of its moratorium on uranium exploration and mining in Sweden; the benefits and timing of the Nasdaq First North Growth Market listing including whether the Company will complete the Nasdaq First North Growth Market listing; the Company's exemptive relief application; the Company's Swedish polymetallic properties; the Company's planned exploration activities, including its drill target strategy and next steps for the Swedish properties; and the Company's interpretations and expectations about the results on the Swedish properties.
These statements and other forward-looking information are based on opinions, assumptions and estimates made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances, as of the date of this news release, including, without limitation, assumptions about: the reliability of historical data and the accuracy of publicly reported information regarding past and historic mines in the Bergslagen district; in respect of the intention of the Swedish government to eventually lift or amend its moratorium on uranium exploration and mining in Sweden; the ability to complete steps to the Nasdaq First North Growth Market listing and obtain other necessary approvals; the Company's ability to raise sufficient capital to fund planned exploration activities, maintain corporate capacity; and stability in financial and capital markets.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks associated with the following: the reliability of historic data on District's properties; the Company's ability to raise sufficient capital to finance planned exploration; that the Swedish government maintains its moratorium on uranium exploration and mining in Sweden for the foreseeable future; that the Nasdaq First North Growth Market listing benefits will not be realized and may increase the regulatory burden on the Company; that the Company may be subject to increased regulatory requirements as a result of the Nasdaq First North Growth Market listing; the Company's limited operating history; the Company's negative operating cash flow and dependence on third-party financing; the uncertainty of additional funding; the uncertainties associated with early stage exploration activities including general economic, market and business conditions, the regulatory process, failure to obtain necessary permits and approvals, technical issues, potential delays, unexpected events and management's capacity to execute and implement its future plans; the Company's ability to identify any mineral resources and mineral reserves; the substantial expenditures required to establish mineral reserves through drilling and the estimation of mineral reserves or mineral resources; the uncertainty of estimates used to calculated mineralization figures; changes in governmental regulations; compliance with applicable laws and regulations; competition for future resource acquisitions and skilled industry personnel; reliance on key personnel; title matters; conflicts of interest; environmental laws and regulations and associated risks, including climate change legislation; land reclamation requirements; changes in government policies; volatility of the Company's share price; the unlikelihood that shareholders will receive dividends from the Company; potential future acquisitions and joint ventures; risks related to existing earn-in and joint venture with Boliden; infrastructure risks; fluctuations in demand for, and prices of metals; fluctuations in foreign currency exchange rates; legal proceedings and the enforceability of judgments; going concern risk; risks related to the Company's information technology systems and cyber-security risks; and risk related to the outbreak of epidemics or pandemics or other health crises. For additional information regarding these risks, please see the Company's Annual Information Form dated July 11, 2022, under the heading "Risk Factors", which is available at www.sedarplus.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information or information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of such factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to publicly update or revise such forward-looking information, except as required by applicable securities laws.
