DNI Metals closes $100,000 first tranche of financing

Jan 30, 2016

DNI CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Further to its news release dated Jan. 29, 2016, DNI Metals Inc. has closed, subject to final regulatory approval, the first tranche of its non-brokered private placement financing. The first tranche comprises two million units of the company at a price of five cents per unit for aggregate gross proceeds of $100,000. Each unit consists of one common share of the company and one common share purchase warrant of the company. Each warrant will entitle the holder to acquire one additional common share at a price of 10 cents per common share for a period of 18 months following the date of the closing of the first tranche. All securities issued under the first tranche are subject to a four-month hold period expiring on May 29, 2016. Pursuant to this placement, DNI’s officers and directors subscribed for 70.5 per cent of the securities in the first tranche of the private placement.

An aggregate cash commission of $8,000 plus an aggregate of 160,000 non-transferable common share purchase warrants is, subject to final regulatory approval, payable in connection with the closing of the first tranche. Each finder’s warrant will be exercisable into one common share at an exercise price of 10 cents for a period of 18 months following issuance.

The company expects to use the proceeds raised from the first tranche to finance general and operating working capital.