VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 2011) - Mr. David Patterson, Chairman of Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M), reports that further to the Company's news release dated July 13, 2011, the Company has received a total of US$20 million from Sandstorm Metals & Energy Ltd. (TSX VENTURE:SND) ("Sandstorm"). These funds are comprised of the following:
- US$17.75 million in upfront cash payment, as outlined in the terms of the Metal Purchase Agreement with Sandstorm; and
- US$2.25 million private placement proceeds.
The Company issued to Sandstorm 6,428,571 common shares at a price of US$0.35 per share pursuant to the private placement. The private placement shares are subject to a hold period expiring November 19, 2011.
Funds raised by way of the private placement and the upfront purchase deposit are being used for the development of the Bracemac-McLeod mine of the Matagami Zinc/Copper Project, located in Québec.
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.
Contact Information:
Andrea Magee
(604) 683-0564 or Toll Free: 1-800-909-8311
(604) 602-9311 (FAX)
donner@bed-rock.com
www.donnermetals.com