DNI Metals arranges $3-million debenture financing

Nov 25, 2015

DNI ANNOUNCES A C$3,000,000 BROKERED CONVERTIBLE DEBENTURE PRIVATE PLACEMENT

DNI Metals Inc.’s board of directors has approved a private placement allowing the company 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-per-cent coupon per annum;
Convertible at 15 cents into common shares;
1,000 warrants attached per principal amount of $1,000, of which one warrant is exercisable at a price of 20 cents for a period of 18 months from closing of the offering.

Commission will be a cash payment equal to 6 per cent of the gross proceeds of the offering, and broker warrants equal to 8 per cent based on the number of shares the debentures convert into.

The use of proceeds of the private placement will be to finance 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, and to provide general working capital.

The laboratory is a 37,000-square-foot laboratory which is a testing facility currently used by mining and clean technology companies for assay work, pilot plant modelling, 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 takeback.

Closing will be on or about Dec. 15, 2015, subject to TSX Venture Exchange’s conditional approval.

http://dnimetals.com/news/