MONTREAL, QUEBEC--(Marketwire - Nov. 13, 2012) -
NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M) is pleased to announce the closing of the second and final tranche of the brokered private placement financing (the "Offering") led by Haywood Securities Inc. ("Haywood") previously announced by news releases on November 1, 2012 and November 5, 2012. Pursuant to the final tranche of the Offering, the Company issued 7,195,000 flow-through shares for the purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of C$0.20 per Flow-Through Share, for gross proceeds of C$1,439,000.
The Flow-Through Shares issued in connection with the second tranche of the Offering are subject to a hold period expiring March 14, 2013.
The Company has paid Haywood a cash commission equal to 6.0% of the gross proceeds raised in connection with the final tranche of the Offering and has issued to Haywood compensation options entitling Haywood to purchase that number of shares equal to 6.0% of the Flow-Through Shares sold pursuant to the Offering, at an exercise price of C$0.20 per share for a period of 24 months following the closing of the Offering. Any shares issued upon the exercise of the compensation options will be subject to a hold period expiring March 14, 2013.
The gross proceeds from the sale of the Flow-Through Shares will be used primarily for the recently announced McLeod Deep exploration drill program and regional exploration which qualify as 100% Canadian Exploration Expense.
This News Release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Donner Metals Ltd.
Donner Metals is an exploration and development company focused on the zinc-copper Matagami Project, a joint venture project with Xstrata Canada Corporation - Xstrata Zinc Canada. Development of the Bracemac-McLeod deposit is currently well underway, with commercial production scheduled to begin in early Q2 2013.
ON BEHALF OF THE BOARD OF DONNER METALS LTD.
David Patterson, Chairman
This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by terms such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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.