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Donner Metals Ltd.: Donner Metals Ltd.: $1,048,000 Financing Closes

^{Published on 2008-12-11 18:11:45 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2008) - Donner Metals Ltd. (TSX VENTURE:DON)(FRANKFURT:D4M) reports the closing of non-brokered private placements totalling $1,048,000. These funds were raised through the issue by the Company of 3,750,000 flow-through shares at a price of $0.16 per share and 2,800,000 units at a price of $0.16 per unit. Each unit is comprised of one flow-through common share and one-half of one common share purchase warrant (the "Warrant"). Each whole share purchase Warrant entitles the holder to acquire one additional non flow-through common share of the Company until December 8, 2010, at a price of $0.20.

The shares issued pursuant to the private placements, and any shares to be issued on exercise of the warrants are subject to a hold period expiring April 9, 2009. In connection with the private placements, the Company paid finder's fees of $15,600 and issued 212,500 finder's shares.

The funds raised by way of the private placement will be used for exploration of the Matagami Zinc/Copper Project, located in Quebec, which is subject to the Option and Joint Venture Agreement with Xstrata Canada Corporation - Xstrata Zinc Canada Division (Xstrata Zinc).

ON BEHALF OF THE BOARD OF DONNER METALS LTD.

David Patterson, Chairman

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.