TORONTO, Aug. 16 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven, DG7:FSE) is pleased to announce that it has completed the second tranche of a non-brokered private placement of flow-through and non-flow-through shares, with arm's length parties, for aggregate gross proceeds of $50,000. The securities issued under the private placements are subject to a four-month hold period expiring on December 17, 2010.
The financing consisted of: (i) placement of 178,572 units at a price of 14 cents per unit, for gross proceeds of $25,000, each unit consisting of one common share and one half of a common share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the company at a price of 20 cents for a period of eighteen months from closing; and (ii) placement of 178,572 flow-through shares at a price of 14 cents per share, for gross proceeds of $25,000.
The current closing is part of a larger private placement financing to be concluded shortly, on terms which contemplate: (a) issuance of up to 15,000,000 flow-through shares at a price of 14 cents each, for gross proceeds of up to $2,100,000; and (b) issuance of up to 10,000,000 units at a price of 14 cents per unit, for gross proceeds of up to $1,400,000, each unit consisting of one common share and one half of one share purchase warrant entitling the holder to purchase an additional common share of the company at a price of 20 cents for a period of eighteen months from closing. Closing of an initial portion of the foregoing financing was announced on August 4, 2010.
Proceeds of the financing will be applied toward DNI's polymetallic shale properties, Athabasca region, Alberta, toward expanded metals leaching R&D testwork and a winter drilling program, to advance the two Potential Mineral Deposits previously identified (announced November 10, 2008) through resource studies toward scoping and economic studies. A portion of the funds will also be applied toward short term operating working capital requirements.
DNI continues to focus its efforts on its polymetallic black shale Properties in Alberta, and on its carried interest in the diamond discovery on its Attawapiskat Property, Ontario.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 29,043,073 (29,400,217 post-financing)
SOURCE DNI Metals Inc.
For further information: For further information: DNI Metals Inc. - Shahe Sabag, President & CEO or Denis Clement, Chairman - 416-595-1195, email firstname.lastname@example.org. Also visit www.dnimetals.com