TORONTO,
March 25, 2013 /CNW/ - 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".
About Dacha
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.
SOURCE Dacha Strategic Metals Inc.