BUY BACK!!!Dacha Strategic Metals Inc.
TSX VENTURE :
DSM
OTCQX : DCHAF
May 30, 2011 17:00 ET
Dacha Strategic Metals Inc. Announces Intention to Make a Normal Course Issuer Bid
TORONTO, ONTARIO--(Marketwire - May 30, 2011) -Dacha Strategic Metals Inc. ("Dacha" or "the Company") (TSXVENTURE:DSM)(OTCQX:DCHAF) is pleased to announce its intention to make aNormal Course Issuer Bid ("NCIB") to buy back its common shares throughthe facilities of the TSX Venture Exchange ("Exchange"). The NCIB issubject to receipt of Exchange approval.
The maximum number ofcommon shares that may be purchased for cancellation pursuant to theNCIB is that number of common shares that represents 10% of the commonshares in the public float on the date that the Exchange approves theNCIB. Based on the 67,476,789 common shares in the public float as atMay 18, 2011, the maximum number of shares that the Company couldacquire would be 6,747,679 common shares. Dacha notes that the number ofits shares in the public float is less than the number of issued andoutstanding Dacha common shares because the public float number does notinclude common shares held by Dacha insiders. Although Dacha intends topurchase the maximum number of shares available under the issuer bid,the actual number of common shares that would be purchased, if any, andthe timing of such purchases will be determined by Dacha consideringmarket conditions, stock prices, its cash position, and other factors.
TheBoard of Directors of Dacha believes that the underlying value ofDacha, particularly based on the liquid assets on hand per share, is notreflected in the current market price of its common shares, and may notbe so reflected at certain times during the course of the NCIB, and hasthus concluded that the repurchase of common shares pursuant to theproposed NCIB presently constitutes an appropriate use of financialresources and would be in the best interest of Dacha shareholders.
Purchasesunder the NCIB are expected to be permitted to commence on or aboutJune 3, 2011 and will terminate on June 3, 2012 or the date upon whichthe maximum number of common shares have been purchased by Dachapursuant to the NCIB. There cannot be any assurance as to how manycommon shares, if any, will ultimately be acquired by Dacha under theNCIB. Dacha intends that any shares acquired pursuant to the NCIB willbe cancelled. Dacha has not previously repurchased any of its commonshares pursuant to an issuer bid.
Any purchases made pursuant tothe NCIB will be made in accordance with the rules of the Exchange andwill be made at the market price of the common shares at the time of theacquisition. Dacha will make no purchases of common shares other thanopen market purchases that may be made during the period that the NCIBis outstanding. National Bank Financial has agreed to act on behalf ofDacha to conduct the NCIB.
Appointment of New Chief Financial Officer
Dachais also pleased to announce the appointment of Mr. Ryan Ptolemy to theposition of Chief Financial Officer. Mr. Ptolemy is a certified generalaccountant and CFA charter holder. Mr. Ptolemy currently serves as ChiefFinancial Officer to a number of public companies in the mining sector.From August, 2005, to September, 2009, Mr. Ptolemy was at anindependent investment dealer in Toronto, most recently serving as ChiefFinancial Officer, where he was responsible for financial reporting,auditing, budgeting and internal controls.
The appointment of Mr.Ptolemy follows the resignation of Mr. Brad Boland who has served asDacha's CFO since September of 2009. Dacha would like to take theopportunity to thank Mr. Boland for his dedicated commitment to Dachaover the past two years, and to wish him the best in his futureendeavours.
About Dacha
Dacha StrategicMetals Inc. is an investment company focused on the acquisition, storageand trading of strategic metals with a primary focus on Rare EarthElements. Dacha is in the unique position of holding a commercialstockpile of Physical Rare Earth Elements. Its shares are listed on theTSX Venture Exchange under the symbol "DSM" and on the OTCQX exchangeunder the symbol "DCHAF".