DNI Metals Inc. is a Canadian-based junior resources company focused on developing a vertically-integrated graphite extraction, refining, and wholesale business. After recognizing the high quality of graphite from central-eastern Madagascar, it acquired the Vohitsara graphite property, received a full mining permit, and commenced exploration to delineate a commercially viable graphite resource.
In December 2016, DNI completed a LOI (Letter Of Intent), valued up to $ 4.5 million, with Australian-based Cougar Metals NL (ASX: CGM) to develop the Vohitsara Graphite Project.
Cougar has the competence to complete a 3,000 meter drilling program, a 1,000 meter trenching program, a NI 43-101 resource study, and a NI 43-101 PEA (Preliminary Economic Assessment). Pursuant to the LOI, this work should be completed by mid-2017.
Upon conclusion of the PEA, one of the four following scenarios will happen:
1.) A 50/50 Joint Venture shall be formed should DNI secure offtake agreements allowing the construction of a 10,000 tpa plant, failing which
2.) Cougar shall acquire 100% of the project by payment of AUD 2.5 million to DNI, failing which
3.) DNI shall acquire Cougar's interest by payment of AUD 2.5 million to Cougar, or
4.) Cougar shall retain a 49% interest in the project. Samples of strong graphitic carbon head-grade results (3% to 13.14% Cgr) from four trenches covering a strike length of 700 meters, averaging 300 to 400 meters in width, at Vohistara, yielded the following results:
Flake Distribution, Description, and Size
25.3% Jumbo +30 mesh / +595 microns
29.5% Jumbo +50 mesh / +297 microns
12.6% Large +70 mesh / +210 microns
9.9% Medium +100 mesh / +149 microns
5.8% Small +140 mesh / +105 microns
16.9% Small -140 mesh / -105 microns The Company formed DNI Madagascar Sarl, a wholly owned subsidiary in Madagascar, in order to carry out business in that country. DNI plans to start output at 10 to 12,000 tonnes per year, which will enable them to be extremely competitive in the current graphite market owing to its lower CapEx and OpEx costs, as the ore can go straight into the flotation process following excavation - this is The Saprolite Advantage.
DNI Metals is focused on becoming a cash-flow positive company, with the addition of a fully operating commercial mining-related laboratory: Process Research ORTECH Inc.
The 37,000 sq. ft. technical lab and testing facility, located in the Greater Toronto Area, is fully permitted - up to and including Uranium/Radioactive Materials - and is currently being used by mining and clean technology companies for assay work, pilot plant modeling, technical studies and environmental work. 62 Canadian & US patents have been developed at this facility to date.
Developing a large flake graphite project requires a significant amount of money being spent at laboratories. Drilling assays, and pilot plant/metallurgical work must be done. By having its own lab, DNI will be able to fast track the development of the Vohitsara property, and save the company and its shareholders thousands of dollars, while providing its customers with a secure, reliable, and consistent supply of graphite. Upgrading the graphite in-house will result in higher profit margins for DNI in both the expandable and spherical graphite markets.
They also have a wholesale graphite business importing high-quality Brazilian natural crystalline flake graphite to North America. The Company currently has an agreement to provide Great Lakes Graphite (GLK.V & GLKIF) 34,000 tonnes of -100 mesh 95% Carbon over a five year period, for their Matheson Micronization Facility.
Additional assets include a 0.5% net smelter return gold royalty interest against future production proceeds from the Cane Springs Property and the Kiewit Project Area, Utah.
In December 2016, DNI completed a LOI, for $ 1 million in cash and securities, with Canadian-based BullRun Capital to purchase the Alberta Mining project, known as the SBH or Buckton Project.
The SBH/Buckton Project contains long-term sources of molybdenum, nickel, uranium, vanadium, zinc, copper, cobalt, specialty metals, like: scandium, lithium, thorium, and rare earth elements.
DNI will participate in this venture via $ 600,000 of Units in a new public company, consisting of shares and warrants. BullRun will create the new company through an IPO or RTO in a Canadian recognized/regulated exchange.
Other interests include: the Attawapiskat Property, consisting of around 16 sq. km. land position in the Attawapiskat region, located in the James Bay Lowlands in Ontario; a 50% interest in claims located to the east of the Louvicourt Mine in Val-d'Or, Quebec; and certain patented claims in the Red Lake Gold District, Ontario.
DNI Metals Inc.
119 Pinewood Trail
Phone: (+1) 416-595-1195
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Daniel J. Weir, Chairman, CEO, President, Secretary, and Interim CFO ( LinkedIn )
Paul L. Hart, Director
Dr. Ravi B. Gopal, Director
Keith Minty, Director
Raymond E. Mitchell, Director
Steven Goertz, Manager (Madagascar)
Peter Eriksson, Manager (Brazil)
John Carter, Special Advisor
John Gillett, Inforrmation Manager
Dumont Mining Company (Utah)
DNI Metals Madagascar Sarl
Financial Position: (as of September 30, 2016, in Canadian Dollars)
Total Assets: $ 8,660,202
Total Liabilities: $ 1,112,579
Shareholder's Equity: $ 7,547,623
Auditor: McGovern Hurley Cunningham
Company Documents @ SEDAR
Capitalization: (as of December 28, 2016)
Issued & Outstanding: 39,724,204
Reserved for Issuance: 7,537,707
Shareholders: Over 3,000. 25-30 own 300,000 shares, or more. 5-7 shareholders own more than 1,000,000. Dan Weir controls 1,999,300. No shareholders own more than 10%.
Warrants: 16,823,691 at exercise prices of CAD 0.10 to 0.20
Options: 2,401,500 at exercise prices of CAD 0.06 to 4.40, expiring May 2017 to Jun 2021
Transfer Agent: Equity Financial Trust Company
$DNI (DNI.CN) on CSE (Canadian Securities Exchange)
$DMNKF on OTC (Pink Sheets)
$DG7N on FWB (Frankfurt Stock Exchange)
[Last updated on: December 28, 2016]