Company’s subsidiary, DNI Metals Madagascar Sarl has signed a definitive agreement with Mamy Estelle Randrianasolo and Robert Barnes for the acquisition.
As per the agreement, the company’s subsidiary DNI Madagascar will buy the mining permit covering the property for $400,000.
Barnes lends to DNI a loan totaling $380,000, which is aimed at formalising the reimbursement by the borrower of several expenses and funds made by the lender in relation to the activities undertaken by Mamy Estelle over the property.
It is in the process of being acquired by the borrower through a Madagascar-domiciled mining permit sale agreement.
As security for the loan, DNI Metals has entered into a pledge agreement, whereby the company pledges the entirety of the shares of its 100% owned subsidiary DNI Madagascar to Barnes.
DNI said the pledge will expire after discharge of all payments owing under the definitive agreement, which is fully in compliance with the legal requirements in force in the Republic of Madagascar.
The transaction is subject to the approval of the TSX Venture Exchange and several closing conditions.
DNI Metals CEO Daniel Weir said: The professional team at DNI is very excited about this world class graphite property.
"With other graphite projects in the world having large capex costs and operating costs due to the "hard rock" they are working in (North America), DNI has focused on weathered rock, "saprolitic rock" or soft material found in countries like Madagascar and Brazil. Costs can be significantly lower when working in saprolite."
