Donner Metals Copper Stream With Sandstorm Amended
MONTREAL, QUEBEC -- (Marketwired) -- 07/08/13 -- Donner Metals Ltd.
("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M) reports
that it, Sandstorm Metals & Energy Ltd. ("Sandstorm") and an
affiliate of Sandstorm have amended and restated the Metal Purchase
Agreement dated as of July 12, 2011 and as further amended and
restated as of November 1, 2012 among the Company, Sandstorm and the
affiliate of Sandstorm (the "Metal Purchase Agreement") to, amongst
others, waive the requirement for Donner to sell copper to Sandstorm
Metals during the 2013 calendar year. This amendment has been made in
order to better allow Donner to meet its working capital obligations
that arise under the Development and Operating Agreement (the
"Development Agreement") dated as of July 12, 2011 by and between
Glencore Xstrata plc, formerly Xstrata Canada Corporation - Xstrata
Zinc Canada Division and Donner.
The Company continues to actively pursue various alternatives
encompassing potential financings in order to carry on with the
development of its properties and to meet its obligations, including
the Company's obligation to fund its share of ongoing monthly capital
and operating cash calls for the Bracemac-McLeod mine (which will be
offset by the proceeds of financing and ongoing revenues which have
started in June) contained in the Development Agreement.
The Company also announces that its Board of Directors has initiated
a process to identify, examine and consider a range of strategic
alternatives available to the Company with a view to enhance value of
all stakeholders. It is the Company's current intention not to
disclose developments with respect to the process unless and until
the Board of Directors has approved a specific transaction or
otherwise determines that disclosure is necessary or appropriate.
This news release contains forward-looking information within the
meaning of applicable Canadian securities laws. All information other
than historical fact is forward-looking information. Forward-looking
information relates to future events or future performance and is
based on Donner's current internal expectations, estimates,
projections, assumptions and beliefs. Forward-looking information is
often, but not always, identified by the use of words such as
"expect", "project", "proposed", "intend", "seek", "anticipate",
"budget", "plan", "continue", "estimate", "forecast", "may", "will",
"predict", "potential", "targeting", "could", "might", "should",
"believe" and similar expressions.
Although management considers the assumptions and estimates,
reflected in forward-looking information, to be reasonable, based on
information currently available, there can be no assurance that such
information will prove to be correct. As a consequence, actual
results may differ materially from those anticipated.
In particular, this news release contains forward-looking information
relating to, but not limited to, the Metal Purchase Agreement, the
Development Agreement, to possible financing transactions which may
arise and statements with respect to management's assessment of
future plans regarding the strategic review process.
Undue reliance should not be placed on forward-looking information
which is inherently uncertain, and subject to known and unknown risks
and uncertainties (both general and specific) and other factors that
contribute to the possibility that the future events or circumstances
contemplated by the forward looking information will not occur or
that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information. These risks
include, but are not limited to risks associated with general
economic conditions, the actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future metal prices, the
Metal Purchase Agreement and the Development Agreement, financial
risks, substantial capital requirements, including future cash calls
under the Development Agreement, and the Company's announcement of
its review of strategic alternatives, including uncertainty arising
from the announcement, and uncertainty regarding whether any
transaction will occur. Further information regarding certain of
these risks (as well as risks relating generally to the Company's
business) may be found under the heading "Financial risk factors" in
the Company's Management's Discussion & Analysis. Readers are
cautioned that the foregoing list of factors that may affect future
results is not exhaustive. The forward-looking statements contained
in this news release are made as of the date hereof and Donner does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Donner Metals Ltd.
Toll Free: 1-800-909-8311
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