DNI Metals Receives Full Mining Permits for its Graphite Project in Madagascar
DNI Metals Inc. (DNI: TSX-V) / (DG7: Frankfurt)
TORONTO, July 22, 2015 /CNW/ - DNI Metals Inc. "DNI" is pleased to announce that it has been granted full commercial Mining Licence ("Permis de Exploitation" or "PE") over its Vohitsara graphite project in Madagascar. Originally an artisanal mining permit ('PRE') at the time of the transaction, the Mining permit was granted by the Madagascar Minister for Mines through the national mining cadastre office ("Bureau du Cadastre Minier de Madagascar" or "BCMM").
The BCMM is the government agency responsible for administrative oversight of all mining tenements in Madagascar.
The obtaining of a full PE marks a significant milestone for DNI in Madagascar; as it allows DNI to move to full commercial production at its option, subject to completion / fulfillment of the requisite environmental impact and social responsibility ("EIE" & "CSR") studies and obligations.
Neither of these requirements are onerous and DNI will be moving to fulfill these requirements concurrent with its upcoming fast-track exploration and development programme for the Vohitsara Project.
DNI's Mining (PE) Licence has a term of 40 years and is fully renewable. The following table sets out the license types in Madagascar.
| Licence Type | PRE | PR | PE (DNI License) |
| Licence Description | Artisanal Mining Licence | Exploration | Mining Licence |
| Term of Validity | 8 Years | 5 Years | 40 Years |
| Renewal | 4 years – multiple | 3 Years x 2 | 20 Years - Multiple |
| Eligibility | Malagasy Nationals | All Local Entities | All Local Entities |
| Maximum Size (km2) | 100 | 1,000 | 1,000 |
| Rights Conferred | Exploration & Mining | Exploration | Exploration & Mining |
| Sale of Mineral | Yes | No | Yes |
| Restrictions | Maximum 20 Workers / No | No Commercial | Full Commercial Mining |
| Environmental | Simple Preliminary Study | Simple Preliminary | Full Impact Study (E.I.E) |
Dan Weir, CEO, commented, "We were attracted to Madagascar because it is known for its Large Flake, High Quality Graphite and because Madagascar has a world-class Mining Code. Additionally, the area in which our Project is located contains excellent infrastructure and port facilities and the mineralisation itself is hosted in soft 'free-dig' material that greatly facilitates commercial extraction and processing.
Having a full commercial mining permit at this stage gives DNI a significant advantage to advance its graphite production plans in Madagascar."
DNI - TSX Venture
DG7 - Frankfurt
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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&A's, all of which are available from SEDAR and on its website.
SOURCE DNI Metals Inc.
Contact
DNI Metals Inc. - Dan Weir, President & CEO 416-595-1195, DanWeir@dnimetals.com, Email ir@dnimetals.com. Also visit www.dnimetals.com