Dacha Strategic Metals Update
March 25, 2013 (Source: CNW) Toronto, ON — Dacha Strategic Metals Inc. (TSX-V: DSM) (“Dacha”) today announced the following update regarding its business and operations.
As previously disclosed, since the reconstitution of Dacha’s board on November 28, 2012, Dacha has been reviewing its opportunities and prospects to create shareholder value from both its existing metals inventories and its rare earth metals business going forward. That review, which is continuing, also includes an assessment of Dacha’s overall corporate strategy and strategic and other alternatives available to it, all with a view to ensuring that Dacha’s actions going forward maximize long-term shareholder value.
As part of that review, Dacha has also been actively pursuing alternative strategies to fund the payment of the previously disclosed Cdn. $4.85 million that is owed to certain former executives and consultants of Dacha (the “Former Executives”) in respect of their change of control arrangements (the “Termination Payments”).
Dacha has now completed sales of an aggregate of 14,000 kilograms of dysprosium oxide that was previously warehoused in Korea for gross proceeds of approximately U.S. $5.6 million. The proceeds from these sales will be used, as to Cdn. $4.85 million, to fully pay the Termination Payments prior to March 28, 2013, with the balance being applied towards other payables owing by Dacha and/or for general working capital. Upon the payment of the said Cdn. $4.85 million to the Former Executives, no further amount will be owed to them by Dacha or its subsidiaries and the security arrangements implemented in connection with the Termination Payments will be fully discharged.
As part of Dacha’s ongoing strategic review, Dacha continues to evaluate Dacha’s inventory position and may make future purchases or sales of rare earth metals depending upon market conditions.
Dacha also announced today that, as part of its continuing efforts to reduce costs, its common shares will cease to be listed, effective March 31, 2013, on the OTCQX exchange in the United States. Given that the vast majority of trading in Dacha’s common shares occurs on the TSX Venture Exchange, Dacha made this decision so as to eliminate unnecessary costs. The common shares of Dacha will continue to be listed on the TSX Venture Exchange under the symbol “DSM”.
Dacha has invested in physical strategic minerals and, in particular, indirectly owns an inventory of physical strategic minerals with a focus on rare earth elements. Its shares are listed on the TSX Venture Exchange under the symbol “DSM”.
Except for statements of historical fact relating to Dacha, certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to Dacha’s ability to trade in rare earth elements, the realization value of Dacha’s physical inventory portfolio, the proposed investment strategy of Dacha, and general investment and market trends. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Dacha to be materially different from those expressed or implied by such forward-looking information. Although management of Dacha has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Dacha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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 RELEASE.
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