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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES
Donner Metals Ltd. ("Donner" or the "Company") (TSX
VENTURE:DON)(FRANKFURT:D4M) is pleased to announce that it has entered into
an agreement with Haywood Securities Inc. ("Haywood") under which
Haywood has agreed to act as agent for the private placement, on a guaranteed
agency basis, of 9,090,910 common shares of the Company designated as flow-through
shares for purposes of the Income Tax Act (Canada) (the "Flow-Through
Shares") at a price of C$0.22 per Flow-Through Share, for gross proceeds
to the Company of C$2,000,000.
The Company also intends to complete a concurrent non-brokered private
placement of 2,000,000 Flow-Through Shares at a price of C$0.22 per
Flow-Through Share for gross proceeds to the Company of C$440,000.
The aggregate proceeds from the sale of the Flow-Through Shares will be used
for the advancement of the Matagami Project in
Quebec.
The closing of the financing is subject to the completion of formal
documentation, receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange, and other customary conditions.
The Flow-Through Shares will be subject to a four-month hold period.
This press release does not constitute an offer to sell, nor is it a
solicitation of an offer to buy, securities.
These securities have not been and will not be registered under the United
States Securities Act of 1933, as amended, or the securities laws of any
state, and may not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons unless an exemption from the registration
requirements of the United States Securities Act of 1933, as amended, and all
applicable state securities laws is available. This press release does not
constitute an offer to sell or the solicitation of an offer to buy these
securities in the United States or to, or for the account or benefit of, U.S.
persons.
Donner Metals Ltd.
Donner Metals Ltd. is a Canadian development and exploration company focused
on base and precious metal projects in Quebec. Donner's flagship project is a
partnership with Xstrata Canada Corporation in the Matagami
Mining Camp covering both the current development of a new mine and on-going
exploration activities. The project is located in the Abitibi region of
central Quebec and it is supported by Xstrata's existing mine infrastructure,
a highly experienced workforce and an operating 2,950 tonne
per day mill. As well, the area is serviced by highway, power, airport, railway and town site infrastructure.
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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