Donner Metals Ltd.: Bracemac-McLeod Interest (ccnm)

MONTREAL, QUEBEC--(Marketwired - Aug. 13, 2013) - 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.