Donner Metals Ltd.

TSX VENTURE : DON
FRANKFURT : D4M


Donner Metals Ltd.

March 28, 2014 16:02 ET

Closing of $200,200 Non-Brokered Financing and Beginning of First Drilling Program With Midland on the Valmond Gold Property

MONTRÉAL, QUÉBEC--(Marketwired - March 28, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON), announces that it closed today a non-brokered private placement for aggregate gross proceeds of $200,200 to the Company. The funds of the private placement have been raised through the issuance of 1,540,000 units of the Company at a price of $0.13 per unit. Each unit consists of one common share in the capital of the Company and one common share purchase warrant (the "Units"). Each warrant entitles the holder to acquire one common share at a price of $0.175 per common share until March 28, 2016. The securities of the Company to be issued pursuant to the private placement are subject to a four-month hold period expiring July 29, 2014. In connection with the private placement, the Company has agreed to pay to certain finders a finder's fee of up to 8% in cash, representing an aggregate amount of up to $13,416, and an 8% finder's option representing an aggregate of 103,200 options. Each option is non-transferable and exercisable for one unit at a price of $0.13 per unit until March 28, 2015. Each underlying warrant for each such option will be non-transferable.

The aggregate proceeds from the sale of the Units for the private placement will be used solely for the advancement of the Valmond gold property (the "Property") in Quebec including the execution of a drilling program. The private placement is being filed on an expedited basis and is subject to approval by the TSX Venture Exchange.

Valmond drilling

Donner, in partnership with Midland Exploration Inc. ("Midland"), is pleased to initiate their first diamond drilling program on the Property. The Property, currently wholly owned by Midland, consists of 111 claims covering a surface area of about 62 square kilometres and is located about 50 kilometres west of the town of Matagami, in Abitibi, Quebec.

The Property covers a segment of more than 15 kilometres along the Bapst fault, an important gold-bearing structure trending NW-SE that hosts several historical occurrences with drill intercepts grading 2.3 g/t Au over 4.57 metres and 5.22 g/t Au over 1.55 metre. This structure has seen very little exploration in the past and the main showing known to date has been traced over a strike length of more than 300 metres. This gold showing is characterized by an extensive hydrothermal alteration zone, more than 70 metres wide, and remains open beyond 200 metres vertical depth, where the deepest historical drill hole yielded a grade of 3.77 g/t Au over 1.50 metre.

In December 2013, a geophysical program was completed on the Property in partnership with Midland. This work, which included an induced polarization (IP) survey totalling 48.1 kilometres as well as a helicopter-borne electromagnetic VTEM survey totalling about 900 line kilometres, successfully identified several new high-priority targets located near the Bapst fault and along the strike extensions of historical gold showings located on the Property (see Donner's press release dated January 16, 2014).

A drilling program totalling approximately 1,850 metres has been designed to test significant IP and VTEM targets identified in 2013. This program will also test the main showing with two drill holes at vertical depths of 275 and 350 metres, i.e. about 100 metres below historical drill hole S86-9 which graded 3.77 g/t Au over 1.50 metre (Source: MRN SIGEOM NTS sheet 32E09; GM46724). The new geophysical targets to be drill-tested are characterized either by higher chargeability values, lower resistivity values, or a combination of the two. They also generally represent isolated anomalies that have never been drill-tested and are located in a complex structural setting where E-W-trending structures commonly intersect.

Donner also announces that an independent NI 43-101 Technical Report (the "Report"), has been submitted to the company and filed on SEDAR on the Property. The Report, dated March 12, 2014, was prepared according to NI 43-101 guidelines and was authored by Camille St-Hilaire, P.Geo.

Donner may earn a 50% interest in the Property in consideration of exploration expenditures totalling $2,500,000, including a firm commitment of $300,000 during the first year of the agreement, and cash payments totalling $250,000 over a period of four years. Donner's commitments for the first year of the agreement have been fulfilled. Midland will be the project operator for the duration of this option agreement.

Update on the finder's fees payable in connection with the previous $1,035,476 oversubscribed non-brokered financing

The Company also wishes to provide a second update on its $1,035,476 oversubscribed non-brokered private placement that closed in two tranches on February 14 and 21, 2014. The news release announcing the closing of the second tranche on February 21, 2014 stated that the Company had agreed to pay to certain finders an 8% finder's option representing an aggregate of 56,800 options, however, the press release should have stated that the Company has agreed to pay to certain finders finder's an aggregate of options in the aggregate amount of 72,800. In addition, the news release issued on March 4, 2014, which rectified the aggregate amount of the 8% cash finder's fee that the Company had agreed to pay to certain finders in relation to such private placement, stated that the aggregate amount of the cash finder's fee was $45,834.36. However, the press release should have stated that the Company has agreed to pay to certain finders finder's fees in the aggregate amount of $47,754.36.

This press release does not constitute an offer to sell, nor is it a solicitation of an offer to buy, securities. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons unless an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and all applicable state securities laws is available.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States or to, or for the account or benefit of, U.S. persons.

About Donner Metals

Donner is an exploration company focused on the development of mineral exploration projects in Quebec and to explore a roll-up strategy.

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

"Normand Champigny"

President & Chief Executive Officer

This news release contains forward-looking information within the meaning of applicable Canadian securities laws. All information other than historical fact is forward-looking information. Forward-looking information relates to future events or future performance and is based on Donner's current internal expectations, estimates, projections, assumptions and beliefs. Forward-looking information is often, but not always, identified by the use of words such as "expect", "project", "proposed", "intend", "seek", "anticipate", "budget", "plan", "continue", "estimate", "forecast", "may", "will", "predict", "potential", "targeting", "could", "might", "should", "believe" and similar expressions. Although management considers the assumptions and estimates, reflected in forward-looking information, to be reasonable, based on information currently available, there can be no assurance that such information will prove to be correct. As a consequence, actual results may differ materially from those anticipated.

Undue reliance should not be placed on forward-looking information which is inherently uncertain, and subject to known and unknown risks and uncertainties (both general and specific) and other factors that contribute to the possibility that the future events or circumstances contemplated by the forward looking information will not occur or that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include, but are not limited to risks associated with general economic conditions, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future metal prices, financial risks and substantial capital requirements. Further information regarding certain of these risks (as well as risks relating generally to the Company's business) may be found under the headings "Risks and Uncertainties", "Forward-Looking Information" and "Financial risk factors" in the latest Company's Management's Discussion & Analysis on www.sedar.com. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and Donner does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor it's 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.

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