TORONTO, March 25, 2013 /CNW/ - Dacha Strategic Metals Inc. (TSX-V: DSM)
("Dacha") today announced the following update regarding its business
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
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.
SOURCE: Dacha Strategic Metals Inc.
For further information:
Peter H. Puccetti
Chief Executive Officer
Dacha Strategic Metals Inc.