DNI Metals closes $211,200 third tranche of financing

Apr 15, 2016

DNI METALS INC. CLOSES THIRD TRANCHE OF PRIVATE PLACEMENT

Further to its news release dated Jan. 29, 2016, DNI Metals Inc. has closed, subject to final regulatory approval, the third tranche of its non-brokered private placement financing. The third tranche comprises 4,224,000 units of the company at a price of five cents per unit for aggregate gross proceeds of $211,200. 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 third tranche. All securities issued under the third tranche are subject to a four-month hold period expiring on Oct. 15, 2016. Insiders subscribed for 38.5 per cent of the securities in the third tranche of the private placement.

An aggregate cash commission of $5,592, plus an aggregate of 111,840 non-transferable common share purchase warrants, is, subject to final regulatory approval, payable in connection with the closing of the third tranche. A finder’s fee of $4,000 cash and 80,000 non-transferable common share purchase warrants will be payable to Industrial Alliance Securities Inc. and a separate finder’s fee of $3,200 cash will also be paid. 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 will to use the proceeds raised from the third tranche to finance general and operating working capital.

The company also announced that Denis Clement has resigned from the board to pursue other interests. The board of DNI Metals wishes him all the best with his future endeavours.