Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

April 07, 2009 20:01 ET

Donner Metals Ltd.: Private Placement Totalling $901,595 Closes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2009) - Further to the Company's news release dated March 16, 2009, Mr. David Patterson, Chairman of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that the Company has closed a private placement totaling $901,595. The funds were raised by the Company issuing a total of 2,180,500 flow-through ("FT") Units, at a price of $0.19 per FT Unit, where each FT Unit is comprised of one common share and one-half of one share purchase warrant, each whole warrant is exercisable into one common share at a price of $0.25 for two years; 115,000 FT common shares, at a price of $0.19 per FT common share; and 3,103,000 non flow-through ("NFT") Units, at a price of $0.15 per NFT Unit, where each NFT Unit is comprised of one common share and one share purchase warrant, exercisable into one common share at a price of $0.25 for two years.

The private placements closed in stages, accordingly of the 5,398,500 shares issued, 2,115,000 are subject to a hold period expiring July 24, 2009, 3,000,000 are subject to a hold period expiring July 26, 2009, and 283,500 are subject to a hold period expiring August 1, 2009.

Of the 4,193,250 warrants issued, 1,000,000 will expire March 23, 2011, 3,000,000 will expire March 27, 2011, and 193,250 will expire March 31, 2011. Any shares issued on exercise of the warrants will be subject to a four month hold period from the closing date of that portion of the private placement.

The Company has undertaken to pay finder fees of $54,096 and to issue 323,910 finder warrants, of which 126,900 will expire March 23, 2010, 180,000 will expire March 27, 2010 and 17,010 will expire March 31, 2010. The finder warrants are exercisable into one common share at a price of $0.25. Any shares issued on exercise of the finder warrants will be subject to a four month hold period from the closing date of that portion of the private placement.

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.

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