DNI Metals, Inc. (DNI.CN & $DMNKF) DD
Post# of 119
DNI Metals is focusing on developing a vertically integrated graphite extraction, refining, and wholesale business, by using a three-pronged cash flow generation strategy.
1.) Wholesale graphite business shipping material from high-quality producers in Brazil to North America.
DNI has a current agreement to provide Great Lakes Graphite (GLK.V & GLKIF) 34,000 tonnes of –100 mesh +95 graphitic carbon over a five year period.
http://www.greatlakesgraphite.com/2015/03/23/...ni-metals/
http://investorintel.com/technology-metals-in...?print=pdf
2.) Fully operating commercial mining-related laboratory
Currently being used by mining and clean tech companies for assay work, pilot plant modeling, technical studies and environmental work. More than 62 Canadian & US patents have been developed at this facility. The company has not made the name public yet - due to confidentiality obligations, since the lab is currently private - but with all the DD I have done, I can tell you that it is:
Process Research ORTECH Inc. ( http://www.processortech.com/ )
Making up approximately 87% of the acquisition value, are hard assets comprised of a 37,000 square foot, two story high facility, located in the Greater Toronto Area. All the equipment needed to operate Pilot Plants and Laboratories, that are used to complete metallurgical, clean technology, and environmental testing will now be owned by DNI upon completion of the transaction.
A building mortgage and VTB (Vendor Take Back) will account for 75% of the acquisition cost. 20% of the building is rented out at competitive rates, already generating income. This acquisition will add about C$ 3.5 million of hard assets to DNI's balance sheet, which I should point out has no long-term or toxic debt .
3.) 100% owned Vohitsara Graphite Property in Madagascar
Their flagship project. Initial exploration results have indicated the presence of a reasonable quantity, quality and tenor of flake graphite mineralisation consistent with the generally high quality of flake graphite found in central eastern Madagascar. The property has a full mining permit, and further development and drilling are scheduled to commence later this year. DNI plans to start output at 12,000 tpa, which will enable the company to be extremely competitive in the current graphite market owing to its lower capex and opex costs as the ore can go straight into the flotation process following excavation - The Saprolite Advantage.
http://dnimetals.com/the-saprolite-advantage/
Samples of strong graphitic carbon head-grade results (3% to 13.14% Cgr) from 4 trenches covering a strike length of 700 metres, averaging 300 to 400 meters in width, at Vohistara, yielded the following results:
Flake Distribution, Description, and Size
29.5% Jumbo +50 Mesh / +297 Microns
25.3% Jumbo +30 Mesh / +595 Microns
16.9% Small -140 Mesh / -105 Microns
12.6% Large +70 Mesh / +210 Microns
9.9% Medium +100 Mesh / +149 Microns
5.8% Small +140 Mesh / +105 Microns
NI 43-101 Report: http://dnimetals.com/wp-content/uploads/2016/...SIGNED.pdf
Video Tour of Vohitsara Property: https://www.youtube.com/watch?v=OFf2EshwLQE
Secondary operations are just as impressive, as DNI Metals owns one of the Top 40 rare earth projects in development , the Buckton Zone - aka the Buckton Deposit.
http://www.pcreml.com/largest-global-re-deposits
The Company currently holds a 100% undivided direct interest in 21 metallic and industrial mineral permits, located in the Athabasca region, approximately 120 kilometres north of Fort McMurray, Alberta, giving DNI the exclusive right to explore for metallic and industrial minerals for a fourteen year term subject to traditional bi-annual assessment work performance requirements.
DNI is evaluating the potential of its polymetallic black shales as a long-term source of molybdenum, nickel, uranium, vanadium, zinc, copper, cobalt, specialty metals (scandium, lithium and thorium) and rare earth elements. They have advanced one of the polymetallic zones identified on its property, the Buckton Zone, through a Preliminary Economic Assessment Study reporting positive economics for the 4.5 billion tonnes Buckton Deposit extending over 21.9 sq. km.
http://dnimetals.com/other-assets/
DNI has recently announced completion of their C$ 500,000 Private Placement, and has added Lithium Ion Battery and Fuel Cell Experts to their Board of Directors.
http://www.newsfilecorp.com/release/20690/DNI...-Financing
http://www.newsfilecorp.com/release/20753/DNI...-Directors
Issued & Outstanding: ~ 39.5 million shares, as of May 19, 2016, and the float is less than 30 million , as Management, Board, and Advisors own ~ 25% of the Company.