Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M

Donner Metals Ltd.

September 30, 2014 09:00 ET

Donner to Acquire Drill-Ready Dollier Gold Project From Cartier Resources

MONTREAL, QUEBEC--(Marketwired - Sept. 30, 2014) - Donner Metals Ltd. ("Donner") (TSX VENTURE:DON) announces the execution of a binding letter of agreement with Cartier Resources Inc. ("Cartier") to grant in favour of Donner an option to purchase an interest of up to 100% in the Dollier gold project (the "Project") composed of 40 claims.

Initially, Donner has a first option to earn a 50% undivided interest in the Project in consideration for: (a) the issuance of 600,000 common shares of Donner, and (b) an amount of $1,800,000 in exploration expenditures on the Project over a period of three (3) years as follows:

Period Ending Expenditures Common Shares
December 31, 2014 $400,000(1) 150,000 Donner Shares
December 31, 2015 $700,000 200,000 Donner Shares
December 31, 2016 $700,000 250,000 Donner Shares
Total $1,800,000 600,000 Donner Shares

(1) Firm commitment

Following the exercise of the first option, Donner may elect to have a second option to earn an additional 25% undivided interest in the Project, over a period of five (5) years, on the basis that in consideration for each additional tranche of 1% interest in the Project, Donner will pay $50,000 in cash to Cartier and will fund $250,000 of exploration expenditures.

Following the exercise of the second option, Donner may elect to have a third option to earn an additional 25% undivided interest in the Project, over a period of five (5) years, on the basis that in consideration for each additional tranche of 1% interest in the Project, Donner will pay $100,000 in cash to Cartier and will fund in the aggregate $500,000 of exploration expenditures.

A joint venture will be formed on the earlier of the date on which the second option will terminate or the third option will terminate. The joint venture agreement will also provide that once the interest of a party in the Project and/or in the Joint Venture becomes less than 10%, such interest shall be transferred to the other party and converted into a 2% NSR, with each tranche of 1% NSR being redeemable for $1,000,000.

This transaction is subject to regulatory approvals.

Dollier Gold Project

The Project claims cover an area of 22 km2 and are in good standing until 2036. Cartier has 100% ownership and there are no royalties outstanding. The Project is located 45 km south of the town of Chibougamau and is road accessible throughout the year. The area hosts many gold and copper-zinc deposits and past producers.

In the 1970s, magnetic and electromagnetic surveys and drilling performed by Falconbridge Copper Ltd. lead to the discovery of the Delinel Zone. Surface sampling and drilling carried by Cartier from 2007 to 2011 outlined gold mineralization hosted in disseminated and locally massive sulphides at the Delinel and the North Delinel zones which are both characterized by prominent electromagnetic conductors and induced polarization anomalies. The Delinel Zone features strong sericite alteration. The best channel samples returned 9.2 g/t Au over 1.1 m including 3.9 g/t Au over 3.2 m (Delinel Zone), and 3.6 g/t Au over 1.1 m (North Delinel Zone). The best drilling interval for the Delinel Zone returned 13.3 g/t Au over 1.2 m. The North Delinel Zone returned a drill interval grading and 11.2 g/t Au over 0.3 m. The two zones have been drill tested locally to a depth of 160 m and mineralization remains open both at depth and along strike.

The Project is situated within the eastern part of the Abitibi geological subprovince of the Superior province. In the Project area, most rocks are volcanics of mafic to felsic composition. The rocks have been regionally folded and metamorphosed to the amphibolite grade. The rock layers are parallel to the regional schistosity and have a nearly vertical dip. Along the southern limit of the Project area, a tonalitic pluton cuts the volcanic units. The Project is drill-ready with many untested drill targets with geophysical signature along the extension of the Delinel and North Delinel zones as well as sub-parallel zones to the south. Cartier and Donner are designing a drilling program to test these targets before the end of 2014.

About Donner

Donner is an exploration company focused on the development of mineral exploration projects in Quebec and on executing a roll-up strategy that includes the acquisitions of operating mines. The Corporation is committed to a leading standard of practice with respect to health, safety, community relations and environmental management.

This press release was prepared by Normand Champigny, President and Chief Executive Officer of Donner Metals Ltd. and Qualified Person as defined by NI 43-101.

Neither 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.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Donner's periodic reports including the annual report or in the filings made by Donner from time to time with securities regulatory authorities.

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