TORONTO, ONTARIO--(Marketwire - Oct. 12, 2012) - Dacha Strategic Metals Inc. (TSX VENTURE:DSM)(OTCQX:DCHAF) has mutually agreed with Aberdeen International Inc. to terminate the previously announced business combination agreement between Dacha and Aberdeen (For further information on the proposed business combination please see the joint press release of Dacha and Aberdeen dated August 15, 2012). Dacha and Aberdeen were not able to secure satisfactory assurances from the Toronto Stock Exchange that the combined entity would be listed on the Toronto Stock Exchange. The exchange indicated that the pro-forma company would not meet the net income tests set out in the listing requirements.
Scott Moore, President and Chief Executive Officer of Dacha noted that, "Dacha is disappointed that the business combination with Aberdeen will not be proceeding. Unfortunately we would not be able to practically continue Aberdeen's current investment business if the resulting issuer was not listed on the TSX. As a result, the respective special committees and the boards of both companies have decided not to proceed with the transaction as proposed."
No break fees will be payable in connection with the termination and each party will be paying their own costs related to the transaction.
Dacha Strategic Metals Inc. is an investment company focused on the acquisition, storage and trading of strategic metals with a primary focus on Rare Earth Elements. Dacha is in the unique position of holding a commercial stockpile of Physical Rare Earth Elements. Its shares are listed on the TSX Venture Exchange under the symbol "DSM" and on the OTCQX exchange under the symbol "DCHAF".
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the termination of the business combination agreement with Aberdeen, the Company's ability to trade in rare earth elements, the realization value of Dacha's physical inventory portfolio, proposed investment strategy of the Company, and general investment and market trends. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "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" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Dacha to be materially different from those expressed or implied by such forward-looking information. Although management of Dacha has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Dacha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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 RELEASE.