https://www.miningweekly.com

DNI Metals becomes fully integrated with Toronto-based laboratory, patents acquisition

25th August 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Project developer DNI Metals has signed a nonbinding agreement with a private firm, which could vertically integrate its developing graphite business.

While the company was developing the Vohitsara large-flake graphite project, in Madagascar, for which it had been granted a full commercial mining licence, such operations often required a significant amount of money being spent at laboratories to complete drilling assays and pilot plant/metallurgical work.

Having its own laboratory would allow DNI to fast-track the development of the graphite project and potentially save the company thousands of dollars.

The Toronto-based company said the acquisition would provide it with a gold royalty and a third stream of cash flow, which would complement its graphite trading business.

The deal included more than 62 Canadian and US patents and technologies that were developed at the facility, of which DNI would own several.

Making up about 87% of the acquisition value, were hard assets comprising a 3 437.4 m2, two-storey-high facility. Should the deal close, DNI would also acquire equipment needed to operate pilot plants and laboratories, used to complete metallurgical, clean-technology and environmental testing.

A building mortgage and vendor take-back would account for 75% of the acquisition cost. Twenty per cent of the building was rented out at competitive rates, creating income.

The vendor’s business model was focused on developing technologies.

The facility and equipment would allow DNI to drive multiple revenue streams by continuing to develop technologies and lifting the revenue generated from the laboratories and pilot plants.

DNI could also use this fully permitted facility to develop and implement various technologies to upgrade graphite, thus, increasing the sale value of every tonne of graphite being sold.

Every producing graphite mine was required to certify its products for carbon content, ash content, moisture content, particle size and impurities. Having its own laboratory, experts and training facility would allow DNI to provide its graphite buyers with a secure, reliable and consistent supply of graphite, the company said.

Owing to confidentiality obligations, DNI could only reveal the name of the company that it was acquiring and contract details within the next 90 days, if the 45-day due diligence period was completed and a definitive agreement had been signed.

Grab samples from the Madagascar project had returned head grades of 9.85%, 10% and 35.5% graphite. The material had a jumbo and large flake distribution of more than 62.5%, meaning that graphite in those categories contained 91.3% to 97.9% of carbonic graphite.

The company also held interests in prospecting plays in Alberta and Ontario, in Canada.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.206 0.239s - 106pq - 2rq
Subscribe Now