Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX
VENTURE:DSM)(OTCQX:DCHAF) is issuing this press release at the request of TSX
Venture Exchange (the "Exchange") to provide information regarding the
convertible loan it issued to Forbes & Manhattan Asset Management Corporation
("FMAMCo"), a related party, for up to C$3,500,000 during the fiscal year ended
March 31, 2010. The Company loaned FMAMCo $3,056,118 and accrued interest of
$647,732 on the loan. To date the Company has written off $2,056,118 of the
principal amount of the loan as well as the interest receivable of $647,732.
Further write-offs on the principal may occur. On May 15, 2012, FMAMCo advised
the Company that it had conditionally sold the underlying business and all its
subsidiaries including Monarch Wealth Corporation for $1,950,000. The first
payment of $750,000 will be applied to the subordination agreement with
non-arm's length party, Forbes & Manhattan, Inc. (see press release dated March
1, 2012) and other FMAMCo liabilities. Although not completed at this time,
FMAMCo and Dacha intend to enter into a release and assignment agreement
irrevocably directing the remaining installment payments from this sale to
Dacha. As a result Dacha expects to receive $1.2 million less certain contingent
FMAMCo liabilities as repayment for this loan. Stan Bharti is a director of both
Dacha and FMAMCo and Executive Chairman of Forbes & Manhattan, Inc. therefore,
transactions between Dacha, FMAMCo and Forbes & Manhattan, Inc. are considered
to be non-arm's length.


The Exchange conducted an issue specific review on the Company and concluded
that non-arm's length transactions commencing August 2009 failed to comply with
Exchange Policies requiring timely press release disclosure and Exchange
notification for non-arm's length party transactions. To address past
deficiencies in the corporate governance practices applied and to ensure the
Company appropriately deals with non-arm's length transactions according to TSX
Venture Exchange Policy going forward, the Company has implemented a Code of
Business Conduct and Ethics and a Corporate Disclosure Policy. 


About Dacha 

Dacha Strategic Metals Inc. is an investment company focused on the acquisition,
storage and trading of strategic metals with a primary focus on Rare Earth
Elements. Dacha is in the unique position of holding a commercial stockpile of
Physical Rare Earth Elements. Its shares are listed on the TSX Venture Exchange
under the symbol "DSM" and on the OTCQX exchange under the symbol "DCHAF".


Except for statements of historical fact relating to the Company, 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 the sale of the assets underlying
FMAMCo, receipt of regulatory approvals, receipt of payment on security interest
held in FMAMCo, Company's ability to trade in rare earth elements, the
realization value of Dacha's physical inventory portfolio, proposed investment
strategy of the Company, 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.
Deep South Resources (TSXV:DSM)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Deep South Resources Charts.
Deep South Resources (TSXV:DSM)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Deep South Resources Charts.