DNI Metals signs LOI to sell Buckton to BullRun

Dec 24, 2016

DNI METALS INC SIGNS LOI TO VEND IT’S ALBERTA PROJECT FOR $1 MILLION IN CASH AND SECURITIES

DNI Metals Inc. has completed a letter of intent (LOI) with BullRun Capital, where BullRun plans to purchase DNI’s Alberta mining project known as the SBH or Buckton project.

BullRun Capital plans to complete an initial public offering or reverse takeover into a public company (Pubco) with DNI’s SBH project and other projects.

Terms of the deal

BullRun will pay $150,000 cash to DNI, upon signing of definitive agreement (DA).
BullRun will pay $250,000 cash to DNI, between 90 and 120 days after signing the DA.
Bullrun will complete the sale to Pubco on or before March 31, 2017. In consideration for the acquisition, at closing, Pubco shall issue to DNI $600,000 of units of Pubco consisting of shares and warrants.
Regardless of the presence of any escrow restrictions imposed by the exchange or under applicable securities laws, DNI and Pubco shall enter into a voluntary pooling agreement, pursuant to which the units will be pooled and released in accordance with the following schedule:
1. One-third of units shall be released to DNI on closing of the acquisition.
2. One-third of units shall be released six months after the first release.
3. One-third of units shall be released 12 months after the first release.
DNI as the right to a nominate one person to the board of the new Pubco.
Pubco must be listed on a Canadian recognized/regulated exchange.
The agreement is non-binding until a definitive agreement is completed on or before Jan. 15, 2017.
The agreements are subject board and regulatory approvals.