TORONTO, ONTARIO--(Marketwire - March 1, 2010) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
DACHA CAPITAL INC. (TSX VENTURE:DAC) ("DAC" or the "Company") is pleased to announce the appointment of Mr. Don Bubar, CEO of Avalon Rare Metals to its advisory board.
Mr. Bubar is a geologist with over 30 years experience in mineral exploration in Canada. He is a graduate of McGill University (B.Sc. 1977) and Queen's University (M.Sc. 1981). From 1984 to 1994, Mr. Bubar worked for Aur Resources Inc., where as Exploration Manager, he was involved with the discovery of the Louvicourt copper-zinc deposit, Val d'Or, Quebec in 1989. Since 1995, Mr. Bubar has been President and CEO of Avalon. Mr. Bubar has been a Director of Avalon since 1995.
Mr. Bubar is also a Director of the Prospectors and Developers Association of Canada (PDAC) and was instrumental in the creation of its Aboriginal Affairs Committee in December, 2004. He continues to Co-Chair the committee which advocates for greater co-operation between exploration companies and aboriginal communities.
Scott Moore, President and Chief Executive Officer of Dacha, stated: "We are pleased that Don has joined Dacha's advisory board. His extensive experience in the Rare Earth Elements industry will be important to our business model as we look to capitalize on investments in this category, which is of increasing strategic importance".
The Company is also pleased to announce that the Company intends to complete a private placement financing for a minimum of 44,445,000 special warrants and up to 55,556,000 special warrants of the Company (the "Special Warrants"), at a price of $0.45 per Special Warrant, for gross proceeds of a minimum of $20,000,000 and a maximum of $25,000,000 (the "Offering"). Each Special Warrant will entitle the holder thereof to receive one common share of the Company (a "Common Share") on the exercise or deemed exercise of each Special Warrant. The Special Warrants will be exercisable by the holders thereof at any time after the Closing Date (for no additional consideration) and all unexercised Special Warrants will be deemed to be exercised (for no additional consideration) on the earlier of: (a) the date that is four months and a day following the Closing Date, and (b) the fifth business day after a receipt is issued for a final prospectus by the securities regulatory authorities in each of the provinces of Canada where Special Warrants are issued and sold, qualifying for distribution the Common Shares to be issued upon the exercise of the Special Warrants. The Company shall use commercially reasonable efforts to obtain such receipt for a final exercise of the Special Warrants within 60 days of the Closing Date. Until a receipt is issued for the final prospectus, the Special Warrants (and any Common Shares issued on exercise thereof) will be subject to a four month hold period under applicable Canadian securities laws.
Dacha intends to use the net proceeds from the financing to make opportunistic investments in physical strategic commodities, certain of which are currently unavailable for purchase directly by investors. The Company intends to acquire a strategic inventory of these metals with a primary focus on Rare Earth Elements. Dacha's strategy will be to increase its Net Asset Value by holding, selling and otherwise transacting in physical amounts of such minerals.
In connection with the Offering, Dacha has engaged a syndicate of agents co-led by Mackie Research Capital Corporation and Dundee Securities Corporation and including CIBC World Markets Inc and Cormark Securities Inc (the "Agents").
The Company has agreed to pay the Agents a commission of 6% of the gross proceeds raised and issue the Agents compensation warrants that entitle the Agents to acquire that number of Common Shares of the Company that equal 6% of the number of Special Warrants issued on the Offering.
PDAC Attendance
Dacha will be exhibiting at the PDAC convention in Toronto from March 7th to March 10th at booth # 2529 at the Metropolitan Toronto Convention Centre.
About Dacha
Dacha is an investment holding company. Its shares are listed on the TSX Venture Exchange under the symbol "DAC".
The primary investment objective of the Corporation is to achieve capital appreciation by making opportunistic, special situation investments as deemed attractive by the Board of Directors from time to time across various sectors. Presently, the Board of Directors believes there are dominant, long term global trends that are creating opportunities for capital appreciation through investments in the resource sector. To this end, the Corporation may look to make investments in minerals that are considered undervalued or strategic to global growth and by investing in, holding, selling and otherwise transacting in physical amounts of such minerals. The Corporation's investment strategy may include investments in physical, undervalued, or strategic commodities, certain of which are currently unavailable to investors.
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 proposed use of proceeds, ability to attract financing, proposed investment strategy of the Company, general investment trends, and receipt of all regulatory approvals. 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. Estimates regarding the anticipated impact of the appointment are based on previous professional accomplishments and competencies. 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.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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