TORONTO, Nov. 10 /
CNW/ -
DNI Metals Inc. (DNI:TSX-Ven, DG7:FSE) is pleased to announce that it has completed a non-brokered private placement of flow-through and non-flow-through shares, with arm's length parties, for aggregate gross proceeds of $154,000. The securities issued under the private placements are subject to a four-month hold period expiring on March 4, 2011.
The financing consisted of: (i) placement of 100,000 units at a price of 14 cents per unit, for gross proceeds of $14,000, each unit consisting of one common share and one half of a common share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the company at a price of 20 cents for a period of eighteen months from closing; and (ii) placement of 1,000,000 flow-through shares at a price of 14 cents per share. A commission was paid in connection with the placement, consisting of an aggregate of $8,400 and issuance of 60,000 warrants entitling the holder to purchase an additional common share of the company at a price of 14 cents for a period of eighteen months from closing. Shares underlying the broker warrants are subject to a four-month hold period expiring on March 4, 2011.
The current closing is part of a larger private placement financing, on terms which contemplate: (a) issuance of up to 15,000,000 flow-through shares at a price of 14 cents each, for gross proceeds of up to $2,100,000; and (b) issuance of up to 10,000,000 units at a price of 14 cents per unit, for gross proceeds of up to $1,400,000, each unit consisting of one common share and one half of one share purchase warrant entitling the holder to purchase an additional common share of the company at a price of 20 cents for a period of eighteen months from closing.
Proceeds of the financing will be applied toward DNI's polymetallic shale properties, Athabasca region, Alberta, toward expanded metals leaching R&D testwork which has commenced.
DNI has granted 100,000 stock options, pursuant to the Company's Stock Option Plan, to an officer of the Company to allow for the purchase of up to an aggregate of 100,000 common shares at a price of 15 cents per share for up to five years.
DNI continues to focus its efforts on its polymetallic black shale Properties in Alberta, and on its carried interest in the diamond discovery on its Attawapiskat Property, Ontario.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 29,400,217 (Post-Financing 30,500,217)
%SEDAR: 00010711E
For further information:
DNI Metals Inc.
Shahe Sabag, President & CEO or
Denis Clement, Chairman
416-595-1195
email: ir@dnimetals.com
Also visit
www.dnimetals.com
