Donner Metals Ltd.

Donner Metals Ltd.

May 07, 2009 18:39 ET

Donner Metals Ltd.: Brokered Private Placement Totaling $954,353 Closes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2009) - Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M) -

Further to the Company's news release dated April 8, 2009, Mr. David Patterson, Chairman of the Company, reports that the Company has closed a brokered private placement for gross proceeds totaling $954,353. The funds were raised by issuing a total of 2,315,015 flow-through shares at a price of $0.19 per share ($439,853), and 3,430,000 non flow-through units ("Units") at a price of $0.15 per Unit ($514,500). Each Unit consists of one common share and one common share purchase warrant entitling the holder to acquire one additional common share at a price of $0.25 per share until May 5, 2011.

Industrial Alliance Securities Inc. and Laurentian Bank Securities Inc. acted as co-lead agents for the brokered private placement. Cash commissions totalling $76,348 were paid, and 459,602 broker warrants, (exercisable at $0.25 per share, expiring May 5, 2010), were issued as consideration for the agents' services.

All securities issued to subscribers and the agents, including any common shares which may be issued upon the exercise of warrants, are subject to a hold period expiring September 6, 2009.

The funds raised in this private placement 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, and for general working capital purposes.


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.

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