DNI completes first tranche interim financing for drilling at Alberta polymetallic black shale projects, Athabasca region, Alber
August 04 2010 - 4:35PM
PR Newswire (Canada)
TORONTO, Aug. 4 /CNW/ -- (DNI : TSX-Ven, DG7 : Frankfurt) TORONTO,
Aug. 4 /CNW/ - DNI Metals Inc. (DNI:TSX-Ven, DG7:FSE) is pleased to
announce that it has completed the first tranche of a non-brokered
private placement of flow-through and non-flow-through shares, with
arm's length and non-arm's length parties, for aggregate gross
proceeds of $812,990. The securities issued under the private
placements are subject to a four-month hold period expiring on
December 5, 2010. The financing consisted of: (i) placement of
4,445,643 units at a price of 14 cents per unit, for gross proceeds
of $622,390, 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 1,361,429 flow-through shares at a price of 14
cents per share, for gross proceeds of $190,600. Insiders
participated in the placements to an aggregate of $329,400,
including $29,400 from two directors. A commission will be paid in
connection with some of the placements, consisting of an aggregate
of $17,856 and issuance of 127,543 broker 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 December 5, 2010. The current closing is
part of a larger private placement financing to be concluded
shortly, 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 and a winter drilling program, to advance
the two Potential Mineral Deposits previously identified (announced
November 10, 2008) through resource studies toward scoping and
economic studies. A portion of the funds will also be applied
toward short term operating working capital requirements. 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: 23,236,001 (29,043,073
post-financing) %SEDAR: 00010711E DNI Metals Inc. - Shahe Sabag,
President & CEO or Denis Clement, Chairman - 416-595-1195,
email ir@dnimetals.com. Also visit www.dnimetals.com
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