Value Microcaps Junior Miners

[checkmate28]

DNI Metals DNI.ca DMNKF I want to spend 3 hours to put together a bullet proof post for you guys here, but I just dont have the time. I can however lay out enough information to present where things are headed and to set you up for some serious DD. This will be one, that people look back and wish they took the time to figure out.


First up: NEXT Nextsource Resources currently #1 Active on the TSX
Traded at .055 Dec 28 Traded for .17 today or $78M MC
This is the former Energizer Resources. Longs here know I know the company well, as I have a post history here, following the development of their Green Giant Vanadium and then the current Graphite resource. That was while graphite was hot in 2014 and before I learned the meaning of Saprolite and also, that group of mgt is IMO a dishonest pumping group. Great resources they have, but they are 180km from the port and an 18 hour drive with a snorkeled military vehicle. Many many millions plus time to complete the needed roads to port. Also Carefully worded, I think they have a large permitting problem they are not letting the market know about. From what I can see, their permit is not going to allow them to go to production. They have been talking about getting permitted and how they are going to sell graphite for 4 years now. All they have done is print shares, make name changes, make promises, brand their graphite with the trademark name Superflake and things like that. The market loves it all.

Also note, the Canadian graphite minors are going nowhere fast because they dont have saprolite, theirfore cannot get financed.

https://web.tmxmoney.com/pricehistory.php?qm_symbol=NEXT Click price history

http://www.miningweekly.com/article/nextsource-soars-on-japanese-approval-of-registered-superflake-product-trademark-2018-01-17

2nd: Syrah Res SYR.ASX or SYAAF MC $1.1B &just started commercial prod
http://www.syrahresources.com.au/

Awesome learning material on Graphite Battery Anode Material
http://www.syrahresources.com.au/application/third_party/ckfinder/userfiles/files/Battery%20Anode%20Material%20Presentation.pdf

My understanding here is Syrah being first mover in the space, has a massive production facility that is producing at about 10% capacity and needs economy of scale to be profitable. They may not even make it. I believe they are currently producing at about the same 24,000TPA that DNI is forecasting for Q419. Their website makes some production forecast but no history of production or solid information. I'll believe it when I see it. This is expected with a $10 M MC company but not at $1.1b MC

DNI Metals is currently doing everything NEXT said they would do and fast. DNI just finalized an agreement with Korea Graphite to supply 500Tonnes per mth Q418 TO 2000TPM Q419 NEXT $60M MC / DNI $10M MC
Just a matter of time before the market catches on.

There are several potential catalysts for DNI share price movement.

https://www.bloomberg.com/press-releases/2018-01-15/dni-metals-signs-binding-agreement-with-korea-graphite-to-supply-flake-graphite-for-korean-end-users-subject-to-korea-graphit

South Korea is world’s largest Li-ion battery manufacturer plus huge expandable graphite market

DNI will need final approval for their EIS 500 pg Environmental Impact Statement waiting on approval any day, plus needs to build a 6000TPA plant. Since No explosives, crushers or grinders are needed a PP raise of $2 -$3M should get the plant done in time.

Saprolite means low CAPEX, low OPEX, low Lead time to production. Graphitic Saprolite is only found in a few places in the world.

DNI has excellent infrastructure being right on a main hignway and a 40km paved road to a 1st class international port. I toured the property and made the drive on a site visit.

45 T Bulk sample was sent to India to be tested. India is desperate for graphite and are A potential off take partner. DNI has been there at least 3 times.

On the risk side, DNI has a legal issue with Cougar metals, their former driller who did not even come close to making their contractual obligations to earn in the project. DNI booted them after 2 extensions while CGM only sent one employee to manage and run the project.
I see this as a positive from here, as the worst Cougar Fever is currently priced in, and is temp capping the price IMP.

IMO, worst case if this ever gets to arbitration, is DNI pays CGM $1.5M for the value of half the property plus CGMs costs. This worst case is much worse than CGM owning half the project like was set up originally. If you read the contract, CGM gets nothing and has no rights to arbitration if they do not perform AB and C. I see a possibility of DNI writing a check for a couple hundred grand or something like that. DNI just bought a like property just next store for $1.65M Cad so value should be easy to access.

At the very least, get a handle on the story, follow it, ask some questions, and jump in if you feel comfortable with the risk. DNI is going to catch a wind very soon. There is near zero risk for Checkmate here, and this is my favorite play.

https://www.provenandprobable.com/dni-metals-assay-results-processing-plant-offtake-agreement/ I havent even watched it yet, but near sure Im going to see my twin in a light blue shirt from a site visit.

https://www.dnimetals.com/ My twin is on here several times as well.

DNI $10 M MC Syrah $1.1B MC Theres a long gap in between! DNI's running up on em in the progress dept.


Checkmate28