DNI METALS INC. (DNI : TSX-Ven) (DG7N : Frankfurt)
TORONTO, Nov. 24, 2015 /CNW/ - The Corporation's Board of
Directors has approved a Private Placement allowing it to complete
a brokered private placement, led by D&D Securities Inc., of up
to $3 million in Convertible
Debentures.
The terms for the placement are as follows:
Each Debenture is defined as a Principal Amount of $1,000
Five year term
12 % coupon per annum
Convertible at C$0.15 into common
shares
1,000 warrants attached per Principal Amount of $1,000 of which one warrant is exercisable at a
price of $0.20 for a period of 18
months from closing of the Offering.
Commission will be a cash payment equal to 6% of the gross
proceeds of the Offering, and 8% broker warrants based on the
number of shares the debentures convert into.
The use of Proceeds of the Private Placement will be to fund the
acquisition of an established Laboratory and Technology Facility,
located in the Greater Toronto
Area, as outlined in the non-binding Letter of Intent,
stated in the Press Release of Aug.
25, 2015.
http://www.newswire.ca/news-releases/dni-metals---strategic-acquisition-of-fully-permitted-cash-flowing-established-laboratory-and-technology-facility-522827091.html
and to provide general working capital.
The Laboratory is a 37,000 sq. foot laboratory which is a
testing facility currently used by mining and clean tech companies
for assay work, pilot plant modeling, technical studies and
environmental work.
Of the $4 million purchase price,
$3 million has already been arranged
through a mortgage with one of Canada's leading banks, and a Vendor take
Back, "VTB"
Closing will be on or about December 15,
2015 subject to TSX Venture conditional approval.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 29,586,204
ABOUT DNI METALS INC.
DNI Metals Inc. is focused on becoming a cash-flow positive
graphite company, with vertical integration of mining components at
the core, including the proposed acquisition of a fully operating
commercial mining-related laboratory. DNI also has a whole
sale graphite business shipping material from high-quality
producers in Brazil to
North America. DNI is developing
its flagship Vohitsara project in Madagascar, which has a full mining permit and
further development and drilling will commence in the New
Year. Vohitsara is located 50km by paved road from the
principal commercial port of Madagascar at Toamasina; with the main
mineralization less than two km from this highway.
ABOUT D&D SECURITIES INC.
D&D Securities Inc. is a Canadian investment dealer with
offices in Toronto, Montreal & Calgary. The firm descends from
one of the oldest, continuously operating financial institutions in
North America, New York based Dominick & Dickerman.
Operations commenced in Canada in
1929. D&D enjoys a depth that in unsurpassed in Canadian
Investment Dealer circles.
D&D's services are anchored in investment banking with
professionals that are deeply experienced in the areas of oil &
gas, mining, biotechnology & health sciences, technology,
telecom and equity market structure. We provide a range of advisory
services to public and private corporations alike. Our mandates
typically involve financings, mergers and acquisitions,
divestitures, valuations and fairness opinions. Our core purpose is
to understand the needs of our clients and pursue the most
appropriate solution that meets their strategic goals.
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.
Completion of the transaction is subject to a number of
conditions, including Exchange acceptance and disinterested
Shareholder approval. The transaction cannot close until the
required Shareholder approval is obtained. There can be no
assurance that the transaction will be completed as proposed or at
all.
Investors are cautioned that, except as disclosed in the
Management Information Circular and/or Filing Statement to be
prepared in connection with the transaction, any information
released or received with respect to the COB may not be accurate or
complete and should not be relied upon. Trading in the securities
of DNI Metals Inc. should be considered highly
speculative.
The TSX Venture Exchange has in no way passed upon the merits
of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
SOURCE DNI Metals Inc.