DNI Metals - Closes Oversubscribed $2.8 Million Financing - Erie News Now | WICU & WSEE in Erie, PA

DNI Metals - Closes Oversubscribed $2.8 Million Financing


Toronto, Ontario--(Newsfile Corp. - October 6, 2017) - DNI Metals Inc. (DNI: CSE) (FSE: DG7N) (OTC Pink: DMNKF) ("DNI" or the "Company") announces that with the help of Ascenta Capital it has completed a $2.8 million financing.

Further to its news release dated September 18, 2017, and September 25, 2017 the Company has closed, subject to final Regulatory approval, its non-brokered private placement financing (the "Private Placement"). The financing comprised of 35,000,000 units of the Company (the "Units") at a price of CDN $0.08 per Unit for aggregate gross proceeds of CDN $2,800,000. Each Unit consists of one common share of the Company (a "Common Share") and one common share purchase warrant exercisable at $0.16 per warrant for a period of 18 months. If the volume weighted average trading price of the Company's Common Shares on the Canadian Securities Exchange is $0.24 or higher for at least 30 consecutive trading days, the Company may accelerate the expiry date of the Warrants upon 30 days' notice to the holders.  All securities issued pursuant to this private placement will be subject to a four-month hold. Insiders subscribed for 3.3% of the securities Private Placement. The Company intends to use the net proceeds from the private placement for the acquisition of the Marafody project in Madagascar (see July 26 news release), the building of its modular graphite pilot plant (see August 17 news release) and for working capital.

An aggregate cash commission of $171,809, plus an aggregate of 1,944,640 non-transferable common share purchase warrants (the "Finder's Warrants") is, subject to final Regulatory approval, payable in connection with the closing of financing. Each Finder's Warrant is exercisable at $0.16 per warrant for a period of 18 months. If the volume weighted average trading price of the Company's Common Shares on the Canadian Securities Exchange is $0.24 or higher for at least 30 consecutive trading days, the Company may accelerate the expiry date of the Warrants upon 30 days' notice to the holders. A total of 324,885 units with a value of $25,988.78 were issued in lieu of a cash commission.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

About DNI Metals

Certain advisors and directors of DNI have significant operational experience at historical hard rock graphite mines in Canada (e.g. Ontario and Quebec) and Australia. Between them, they have built three (3) processing plants and designed two (2) others; all, which were shut down in the 1990,'s due to increased Chinese competition. Keith Minty, a director, previously worked at Cal Graphite near Kearny, Ontario.

It was our team's understanding of the high production and capital expenditure costs associated with so-called "hard rock" graphite mining that inspired DNI to search for saprolite-hosted graphite deposits.

Certain parts Madagascar and Brazil, produce graphite from weathered material called saprolite.

According to Dictionary.com, saprolite is described as:

"Soft, thoroughly decomposed and porous rock, often rich in clay, formed by the in place chemical weathering of igneous, metamorphic, or sedimentary rocks. Saprolite is especially common in humid and tropical climates. It is usually reddish brown or grayish white and contains those structures (such as cross-stratification) that were present in the original rock from which it formed."

DNI owns a commercially permitted, saprolite-hosted graphite deposit in Madagascar; located 50kms from the country's main seaport. The deposit is located less than two (2) kms from the paved national highway. DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established. DNI has not yet established mineral resources or mineral reserves supported by a PEA or mining study (PFS or FS).

DNI has a graphite wholesale business, in which it buys and sells high quality graphite. This business has shown a steady increase in volume over the past year.

Steven Goertz (MAusIMM, MAIG), who is a qualified person, approved the technical disclosure in this news release.

About Ascenta Finance Corp.

Ascenta Finance Corp. is an independent boutique institutional investment bank whose services include superior and creative advice to corporations financing, M&A, and restructuring transactions. Ascenta specializes in uncovering undervalued public and private equity investment opportunities across a variety of sectors, including resources, alternative energy, biotech and technology. Ascenta is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and is a member of the Private Capital Markets Association of Canada and the National Exempt Market Association.

DNI — Canadian Securities Exchange
Issued: 56,124,959

For further information, contact:
DNI Metals Inc. — Dan Weir, CEO 416-595-1195

Also visit www.dnimetals.com

We seek Safe Harbour. This announcement may include 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.

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