Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

November 16, 2009 09:00 ET

Donner Metals Ltd.: Private Placements Close

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2009) - Mr. David Patterson, Chairman of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that the Company has closed private placements totaling $3,209,250. The funds were raised by the Company by issuing a total of 9,625,000 flow-through units ("FT Unit") at a price of $0.25 per FT Unit, and 3,650,000 non-flow-through units ("NFT Unit") at a price of $0.22 per NFT Unit.

Each FT Unit consists of one flow-through common share and one half of one common share purchase warrant, where each whole warrant entitles the holder to acquire one non-flow-through common share at a price of $0.35 per share until November 6, 2010. Each NFT Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.35 per share until November 6, 2010.

In addition, holders of $497,665 ($470,000 of principal and $27,665 of accrued interest) of outstanding Company debentures have exchanged their debentures for 2,262,114 NFT Units.

All securities issued to subscribers and debenture holders, including any common shares which may be issued upon the exercise of warrants, are subject to a hold period expiring March 6, 2010.

The funds raised in the private placements will be used for exploration of the Matagami Zinc/Copper Project, located in Quebec, which is subject to the Option and Joint Venture Agreement with Xstrata Canada Corporation - Xstrata Zinc Canada Division.

The Company has undertaken to pay commissions and finder fees of $148,438 in connection with the private placements.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

David Patterson, Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information