DNI METALS INC. (DNI : TSX-V)(DG7 : Frankfurt)
TORONTO, May 29, 2015 /CNW/ - DNI Metals announces that it
has completed the first tranche of a non-brokered Private Placement
by issuing 2,980,507 units at a price of $0.13 per unit, for gross proceeds of
CAD$387,465.91. The securities issued
in the first tranche of the Private Placement are subject to a
four-month-and-one-day hold period expiring on September 30, 2015, pursuant to applicable
securities legislation and the policies of the TSX Venture Exchange
("TSXV"). A Finder's Fee of $27,551.68 will be paid in connection with this
financing.
Insiders of the corporation subscribe to 1,800,000 units offered
under the private placement (the "Insiders' Participation"). The
Insiders' Participation is exempt from the formal valuation and
shareholder approval requirements provided under Regulation 61-101
respecting Protection of Minority Holders in Special
Transactions ("Regulation 61-101") in accordance with sections
5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based
on the fact that the market value of the Insiders' Participation or
the consideration paid by such insider does not exceed 25% of the
market value of the corporation. The corporation did not file a
material change report at least 21 days prior to the completion of
the private placement since the Insiders' Participation was not
determined at that moment.
Private Placement
The Corporation's Board of Directors has approved a Private
Placement allowing it to complete a non-brokered private placement
of up to 3,846,153 Units at a price of $0.13 per Unit for gross proceeds of $500,000.00 (the "Private Placement"). Subject to
TSXV approval.
Each unit consists of one Common share and one
Warrant. Each warrant entitles the bearer to purchase one
Common Share of the corporation at an exercise price of
C$.20 per share for a period
of 18 months from the closing date.
The use of Proceeds of the Private Placement will be for
corporate cash flow purposes.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 21,996,209 common shares
We seek Safe Harbour. This announcement includes forward
looking statements. While these statements represent DNI's best
current judgment, they are subject to risks and uncertainties that
could cause actual results to vary, including risk factors listed
in DNI's Annual Information Form and its MD&As, all of which
are available from SEDAR and on its website.
SOURCE DNI Metals Inc.