DNI announces a C$3,000,000 Brokered Convertible Debenture Private Placement

DNI Metals Inc. (DNI : TSX-Ven) (DG7N : Frankfurt)

TORONTO, Nov. 24, 2015 /CNW/ - The Corporation's Board of Directors has approved a Private Placement allowing it to complete a brokered private placement, led by D&D Securities Inc., of up to $3 million in Convertible Debentures.

The terms for the placement are as follows:
Each Debenture is defined as a Principal Amount of $1,000
Five year term
12 % coupon per annum
Convertible at C$0.15 into common shares
1,000 warrants attached per Principal Amount of $1,000 of which one warrant is exercisable at a price of $0.20 for a period of 18 months from closing of the Offering.

Commission will be a cash payment equal to 6% of the gross proceeds of the Offering, and 8% broker warrants based on the number of shares the debentures convert into.

The use of Proceeds of the Private Placement will be to fund the acquisition of an established Laboratory and Technology Facility, located in the Greater Toronto Area, as outlined in the non-binding Letter of Intent, stated in the Press Release of Aug. 25, 2015.  http://www.newswire.ca/news-releases/dni-metals---strategic-acquisition-of-fully-permitted-cash-flowing-established-laboratory-and-technology-facility-522827091.html and to provide general working capital.

The Laboratory is a 37,000 sq. foot laboratory which is a testing facility currently used by mining and clean tech companies for assay work, pilot plant modeling, technical studies and environmental work.

Of the $4 million purchase price, $3 million has already been arranged through a mortgage with one of Canada's leading banks, and a Vendor take Back, "VTB"

Closing will be on or about December 15, 2015 subject to TSX Venture conditional approval.  

DNI - TSX Venture
DG7 - Frankfurt
Issued: 29,586,204

ABOUT DNI METALS INC.

DNI Metals Inc. is focused on becoming a cash-flow positive graphite company, with vertical integration of mining components at the core, including the proposed acquisition of a fully operating commercial mining-related laboratory.  DNI also has a whole sale graphite business shipping material from high-quality producers in Brazil to North America. DNI is developing its flagship Vohitsara project in Madagascar, which has a full mining permit and further development and drilling will commence in the New Year.  Vohitsara is located 50km by paved road from the principal commercial port of Madagascar at Toamasina; with the main mineralization less than two km from this highway.

ABOUT D&D SECURITIES INC.

D&D Securities Inc. is a Canadian investment dealer with offices in Toronto, Montreal & Calgary. The firm descends from one of the oldest, continuously operating financial institutions in North America, New York based Dominick & Dickerman. Operations commenced in Canada in 1929. D&D enjoys a depth that in unsurpassed in Canadian Investment Dealer circles.

D&D's services are anchored in investment banking with professionals that are deeply experienced in the areas of oil & gas, mining, biotechnology & health sciences, technology, telecom and equity market structure. We provide a range of advisory services to public and private corporations alike. Our mandates typically involve financings, mergers and acquisitions, divestitures, valuations and fairness opinions. Our core purpose is to understand the needs of our clients and pursue the most appropriate solution that meets their strategic goals.

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.

Completion of the transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular and/or Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of DNI Metals Inc.  should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

SOURCE DNI Metals Inc.