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.