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TORONTO, ONTARIO--(Marketwire - June 21, 2012) - 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. |
