DNI Metals completes due diligence for lab acquisition

Oct 20, 2015

DNI METALS – COMPLETES DUE DILIGENCE OF FULLY PERMITTED, ESTABLISHED LABORATORY AND TECHNOLOGY FACILITY

DNI Metals Inc. has completed the due diligence process to purchase 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 dated Aug. 25, 2015.

DNI has paid a deposit to the owners of the company, and has arranged a mortgage with one of Canada’s leading banks. With the mortgage, DNI has arranged 75 per cent of the financing needed to complete the acquisition. The transaction is expected to close by the end of November.

“This facility is a part of DNI’s future, vertically integrated graphite business,” said Dan Weir, chief executive officer of DNI Metals. “The facility will provide clients with laboratories, experts and a training location, and will be a proprietary facility to conduct pilot-plant work and possible future graphite processing for DNI.”

The potential revenue streams from third party metallurgical testing, clean technology processes and environmental studies that come from this facility will be a part of DNI’s growth and corporate strategy.

DNI is working on completing the definitive purchase agreement, and, at completion, DNI will disclose the financial details and terms of this acquisition. Following the successful closing of this transaction, DNI will disclose additional details regarding the facility as, under binding confidentiality obligations, DNI cannot release the name of the company that it is acquiring.

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