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MONTREAL, QUEBEC--(Marketwired - July 8, 2013) - 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.
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 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. |