TSX Venture Exchange Symbol: DNI
TORONTO, March 30, 2015 /CNW/ - DNI Metals Inc. ("DNI") and Great Lakes Graphite Inc. ("GLK") are pleased to provide further details regarding the graphite supply agreement (the "Agreement") announced earlier this week.
Prior to signing the Agreement, DNI had made arrangements with a well-established, large flake graphite producer in South America to wholesale graphite to customers in North America. These customers include Great Lakes Graphite Inc., who require graphite concentrate for the Matheson Micronization Facility. The Agreement provides for the sale by DNI to GLK of 34,000 tonnes of –100 mesh +95 graphitic carbon over a five year period. Pricing of the material sold to GLK under this supply agreement is subject to fixed terms for the first two years.
This Supply agreement is expected to satisfy all of GLK's graphite supply requirements for the first three years of production at Matheson. This transaction is non-arms length as there is a director who serves both companies. This director did not take an active role in the negotiation of the Agreement.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focussed on bringing carbon products to a well defined market through a vertically integrated supply chain.
As there is currently no significant graphite production in North America, Great Lakes Graphite has the ability to become one of the first domestic suppliers to a growing regional customer base that requires high quality natural graphite, where pricing and demand continue to rise.
The Company through its Innovations Division is currently recommissioning an Ontario based Micronization Facility for re-start in late 2015 to achieve the following objectives:
- Establish a position in the upgraded graphite products market with North American customers.
- Create a competitive and disruptive advantage by leveraging existing assets.
- Pursue an accelerated timeline to cash flow and revenue by micronizing and upgrading flake graphite, enabled by supply agreements with current graphite producers.
The Lochaber Graphite Deposit is located just 30km east of Ottawa, in southwestern Québec. The Company has also entered into option and joint venture agreements with Eloro Resources Inc.(TSXV:ELO) on the Summit-Gaber Cobalt property located in the La Grande Greenstone Belt in the Baie James region of Québec. Further information regarding Great Lakes can be found on the Company's website at: www.GreatLakesGraphite.com.
About DNI Metals: DNI Metals Inc. is a Canadian corporation listed on the TSX Venture Exchange, US OTC, and the Frankfurt Stock Exchange. Its affairs are directed by management who are substantial shareholders, and all of its properties are under active exploration. With one Graphite Property in Madagascar, the team at DNI is currently accessing other Graphite properties around the world.
DNI also has a large Polymetallic Project (Buckton Black Shale Project) and Frac Sand Projects in Alberta Canada. A PEA completed in January 2014 on the Buckton Project showed a NPV of C$1.6 Billion pre tax (using a 6% discount)
Further information about DNI, can be found on its website. www.dnimetals.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 18,985,702 common shares
We seek Safe Harbour. This announcement includes forward looking statements. While these statements represent DNI's best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including risk factors listed in DNI's Annual Information Form and its MD&As, all of which are available from SEDAR and on its website.
SOURCE DNI Metals Inc.