DNI METALS INC. (DNI : TSX-V)(DG7N : Frankfurt)
TORONTO, June 15, 2015 /CNW/ - DNI Metals Inc. ("DNI") is
pleased to announce that, having successfully completed its due
diligence investigations, it has, through its wholly-owned
subsidiary DNI Metals Madagascar Sarl ("DNI Madagascar"), entered
into a definitive agreement (the "Definitive Agreement") with Ms.
Mamy Estelle Randrianasolo and Mr.
Robert Barnes, for the acquisition
of a graphite mineral exploration project in Madagascar (the "Property"). Pursuant to
the Definitive Agreement, DNI Madagascar will acquire the mining
permit covering the Property in exchange for an aggregate of
US$400,000 in cash, of which:
(i) - US$10,000 has been
previously paid as a non-refundable deposit; (ii) -
US$90,000 is payable upon closing of
the transaction, and has been wired to the vendors; (iii) -
US$150,000 is payable 180 days
following closing; and (iv) - US$150,000 is payable on the earlier of the third
anniversary of closing, or a determination by the board of
directors of DNI to proceed with commercial production at the
Property.
Under the structure of the Definitive Agreement Robert Barnes,
the Lender, lends to DNI Metals, the Borrower, a Loan amounting to
US$380,000 (Three Hundred Eighty
Thousand United States Dollars). The Loan is intended to
formalise the reimbursement by the Borrower of certain expenses and
funds made by the Lender in respect of the activities carried out
by Ms. Mamy Estelle over the
Property; which is in the process of being acquired by the Borrower
via a Madagascar-domiciled Mining
Permit Sale Agreement. Repayment of this loan is described
above.
As security for this loan, DNI Metals has entered into a pledge
agreement, whereby DNI pledges the entirety of the shares of its
100% owned subsidiary DNI Madagascar Sarl to Mr. Barnes as
Lender. The pledge will expire upon discharge of all payments
owing under the Definitive Agreement. The Definitive Agreement is
fully in compliance with the legal requirements in force in the
Republic of Madagascar.
DNI has also agreed to issue an aggregate of 4,000,000 common
shares as consideration for the assignment to DNI of the exclusive
right to negotiate for the acquisition of the Property.
The completion of the transaction, including the above-mentioned
issuance of common shares, is subject to certain closing
conditions, including the approval of the TSX Venture Exchange (the
"TSXV"). Any securities issued in connection with the
transaction will be subject to a statutory hold period of four
months plus one day.
Daniel J. Weir, CEO of DNI,
commented, "I would like to thank everyone involved in completing
this agreement. The professional team at DNI is very excited
about this world class graphite property. With other graphite
projects in the world having large capex costs and operating costs
due to the "hard rock" they are working in (North America), DNI has focused on weathered
rock, "saprolitic rock" or soft material found in countries like
Madagascar and Brazil. Costs
can be significantly lower when working in saprolite."
As per DNI's press releases dated April
1, 2015 and April 8,
2015; the due diligence trip in March returned head
grades of 9.85%, 10.0% and 35.5% Graphitic Carbon. Further
testing of these samples has returned the following results:
Jumbo and Large Flake distribution of greater than
62.5%.
Jumbo and Large
Flake Graphitic Carbon content ranging 91.3 to 97.9%
|
Flake
Size
|
Flake
Distribution
|
Flake
Description
|
Graphitic
Carbon
|
|
%
|
|
Content
%
|
|
|
|
|
+20 Mesh / + 841
Microns
|
13.7%
|
Super
Jumbo
|
97.9%
|
+30 Mesh / +595
Microns
|
1.9%
|
Jumbo
|
-
|
+50 Mesh / +297
Microns
|
40.0%
|
Jumbo
|
96.7%
|
+70 Mesh / +210
Microns
|
6.9%
|
Large
|
91.3%
|
+100 Mesh / +149
Microns
|
12.9%
|
Medium
|
88.8%
|
+140 Mesh / +105
Microns
|
4.2%
|
Small
|
87.3%
|
-140 Mesh / -105
Microns
|
20.4%
|
Small
|
89.0%
|
Total
|
100.0%
|
|
|
All representative samples were collected under supervision of
DNI's Country Manager, Steven
Goertz. The samples were processed at Process Research
Ortech Inc. and Agat Laboratories, both located in Ontario, Canada.
Graphitic carbon assays were performed using a modified infrared
assay method. This method is preferable to other industry-accepted
assay methods including varying forms of Loss on Ignition (LOI)
testing.
These results were obtained via conventional flotation only
without chemical treatment, i.e. without the use of strong bases
(NaOH – caustic roast technique) or acids
(H2SO4/HF – acid leach technique).
Steven Goertz, DNI's Country
Manager and a Qualified Person under JORC and National Instrument
43-101, supervised the preparation of the information in this news
release and approved this news release.
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: 21,967,004 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.