Donner Metals Ltd.: Bracemac-McLeod Interest

Donner Metals Ltd.: Bracemac-McLeod Interest 
MONTREAL, QUEBEC -- (Marketwired) -- 08/13/13 -- Donner Metals Ltd.
("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M) (reports
that, on August 12, 2013, it failed to make a cash call in the amount
of $4.3 million 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 ("Glencore") and Donner. 
Should Donner fail to remedy this situation within thirty days, it
shall be in default under the Development Agreement (unless it
remedies such failure within a twenty-day curative period following
the receipt of a notice to that effect from Glencore). 
Failure by Donner to meet its obligations under the Development
Agreement will result in Glencore having the right to recoup any
shortfall from Donner's portion of the proceeds of mine production.
Should Donner's portion of the proceeds of mine production be
insufficient to do so, Glencore may elect to buy the Company's
interest at fair market value or to forgive the amount owing and
convert the Company's interest in the Bracemac-McLeod mine to a 2%
NSR royalty, of which a 1% NSR royalty can be purchased by Glencore
for $1 million. 
Donner continues to actively pursue various strategic alternatives
encompassing potential financings in order to carry on with the
development of its properties and to meet its various obligations,
including the Company's obligation to fund its share of ongoing
monthly capital and operating cash calls for the Bracemac-McLeod mine
under the Development Agreement. 
Donner cautions that there can be no assurance that funding will be
available for the Company or, if available, that it will be available
on terms which are acceptable to the Company. The availability of
external financing depends on many factors outside of Donner's
control, including capital market conditions and the overall
performance of the economy. 
Forward-Looking Information  
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 Development Agreement and to
possible financing transactions which may arise. 
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.
Andrea Magee
Director of Corporate Communications
Press spacebar to pause and continue. Press esc to stop.