DNI METALS INC. (DNI : TSX-V)(DG7 : Frankfurt)
TORONTO, March 23, 2015 /CNW/ - DNI Metals Inc. ("DNI") announces today that it has entered into an 5 year supply agreement of natural flake graphite concentrate, to Great Lakes Graphite Inc. ("GLK")
Under the terms of the agreement, GLK will have the ability to purchase up to 34,000 tonnes of material from DNI, which will be sent to the Matheson Micronization Facility for the production of micronized flake graphite. To ensure final product consistency and quality, all of the concentrate will be sourced from a mill that has met the testing requirements performed by the company over the last 6 months.
GLK's CEO Paul Gorman said, "Covenant of long-term supply is a critical prerequisite for initiating commercial operations later this year. With the supply agreement in place and work underway on the Matheson facility, GLK will now intensify its focus on product sales and ramp up activities involved in customer sampling and negotiation for off-take agreements."
Dan Weir, CEO of DNI Metals said, "We are pleased to launch a new chapter for DNI with the announcement of this supply agreement with Great Lakes Graphite. This agreement was able to come together quickly because of the years of networking and preparation that came before. A great deal of time has been invested in building relationships that were brought to bear on making this happen."
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 strategic acquisitions and capable management is becoming a leader in the industrial minerals marketplace.
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.
- Develop customer relationships that will, in the longer term, position the Company to pursue off-take arrangements for Great Lakes' 100% owned Lochaber Graphite Deposit, located in SW Québec.
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.
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.