DNI METALS INC. (DNI : TSX-V)(DG7 : Frankfurt)
TORONTO, March 23, 2015 /CNW/ - DNI Metals Inc.
("DNI") announces today that it has entered into an 5 year
supply agreement of natural flake graphite concentrate, to Great
Lakes Graphite Inc. ("GLK")
Under the terms of the agreement, GLK will have the ability to
purchase up to 34,000 tonnes of material from DNI, which will be
sent to the Matheson Micronization Facility for the production of
micronized flake graphite. To ensure final product
consistency and quality, all of the concentrate will be sourced
from a mill that has met the testing requirements performed by the
company over the last 6 months.
GLK's CEO Paul Gorman said,
"Covenant of long-term supply is a critical prerequisite for
initiating commercial operations later this year. With the
supply agreement in place and work underway on the Matheson facility, GLK will now intensify its
focus on product sales and ramp up activities involved in customer
sampling and negotiation for off-take agreements."
Dan Weir, CEO of DNI Metals said,
"We are pleased to launch a new chapter for DNI with the
announcement of this supply agreement with Great Lakes
Graphite. This agreement was able to come together quickly
because of the years of networking and preparation that came
before. A great deal of time has been invested in building
relationships that were brought to bear on making this happen."
About Great Lakes Graphite: Great Lakes Graphite Inc. is
an industrial minerals company focussed on bringing carbon products
to a well defined market through a vertically integrated supply
chain.
As there is currently no significant graphite production in
North America, Great Lakes
Graphite has the ability to become one of the first domestic
suppliers to a growing regional customer base that requires high
quality natural graphite, where pricing and demand continue to
rise.
The Company, through strategic acquisitions and capable
management is becoming a leader in the industrial minerals
marketplace.
The Company through its Innovations Division is currently
recommissioning an Ontario based
Micronization Facility for re-start in late 2015 to achieve the
following objectives:
- Establish a position in the upgraded graphite products market
with North American customers.
- Create a competitive and disruptive advantage by leveraging
existing assets.
- Pursue an accelerated timeline to cash flow and revenue by
micronizing and upgrading flake graphite, enabled by supply
agreements with current graphite producers.
- Develop customer relationships that will, in the longer term,
position the Company to pursue off-take arrangements for Great
Lakes' 100% owned Lochaber Graphite Deposit, located in SW
Québec.
The Lochaber Graphite Deposit is located just 30km east of
Ottawa, in southwestern
Québec. The Company has also entered into option and joint
venture agreements with Eloro Resources Inc.(TSXV:ELO) on the
Summit-Gaber Cobalt property located in the La Grande Greenstone
Belt in the Baie James region of Québec.
About DNI Metals: DNI Metals Inc. is a Canadian
corporation listed on the TSX Venture Exchange, US OTC, and the
Frankfurt Stock Exchange. Its affairs are directed by management
who are substantial shareholders, and all of its properties are
under active exploration. With one Graphite Property in
Madagascar, the team at DNI is
currently accessing other Graphite properties around the
world.
DNI also has a large Polymetallic Project (Buckton Black Shale
Project) and Frac Sand Projects in Alberta Canada. A PEA completed in
January 2014 on the Buckton Project
showed a NPV of C$1.6 Billion pre tax
(using a 6% discount)
Further information about DNI, can be found on its website.
www.dnimetals.com
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 18,985,702 common shares
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.
SOURCE DNI Metals Inc.