DNI Metals closes $80,050 second tranche of placement

Apr 5, 2016

DNI Metals Inc. has received two term sheets for financing that would form part of the $7-million financing package for DNI’s 2016 business plan that includes the development of DNI’s Madagascar graphite project and the purchase of the lab/tech centre announced in a press release dated Aug. 25, 2015.

Further to its news release dated Jan. 29, 2016, the company has closed, subject to final regulatory approval, the second tranche of its non-brokered private placement financing. The second tranche comprises 1,601,000 units of the company at a price of five cents per unit for aggregate gross proceeds of $80,050. 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 second tranche. All securities issued under the second tranche are subject to a four-month hold period expiring on May 29, 2016. Insiders subscribed for 41.2 per cent of the securities in the second tranche of the private placement.

An aggregate cash commission of $2,820, plus an aggregate of 56,400 non-transferable common share purchase warrants, is, subject to final regulatory approval, payable in connection with the closing of the second 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 second tranche to finance general and operating working capital.

The 60-day due diligence period has been completed as part of the transaction announced on Jan. 28, 2016. It has been decided to not move forward with the acquisition of the private company.