DNI Graphite project #1 Vohitsara

DNI’s Vohitsara Graphite Property

Located in east central Madagascar, the property stradles the paved, National Highway. Toamasina is Fifty kilometres down the highway from the property, and is the major, deep water port, handling 90% of Madagascar’s container traffic and 80% of all trade traffic.

Several past producing graphite mines surround the DNI Property. Stratmin’s currently operating mine lies fifty kilometres to the south. The high graphitic content and 70% large flake distribution, typical of the region, place it as one of the best quality producers on earth.

Sherritt’s Ambatovy Ni-Co mine employs a 220km pipeline, which runs through part of DNI’s Property, to transport slurried ore from their open pit mine to a processing plant in the port city, Toamasina.

  1. Permitted
  2. 50 km to port on a paved highway
  3. Large flake graphite
  4. Saprolite (weathered rock) average depth 28m

Vohitsara Project #1

DNI METALS Vohitsara Drill map

The Current Program at Vohitsara

On November 9, 2016 and revised on December 13, 2016, DNI signed an LOI with Cougar Metals NL (“Cougar”), whereby Cougar could earn a working interest to participate in an earn in option (“Working Right and Earn In”) to develop the Vohitsara property. A definitive agreement was signed on March 24, 2017.

In order to maintain the Working Right and Earn In in good standing, Cougar shall:

  • Pay DNI AUD $200,000.00 within 10 days of a capital raising of at least AUD $500,000 or March 31, 2017 whichever is earlier; and
  • Unless Cougar has withdrawn from the Agreement by April 12, 2017, pay DNI USD $150,000 by June 7, 2017 as full and final settlement for the acquisition of the Property by DNIM and the removal of the Robert Barnes Lien from the Property; and
  • AUD $11,000 plus expenses per month from March 31, 2017 to June 30, 2017. representing payment for the main focus of the DNI Madagascar team to assist Cougar’s Earn In. Any additional workers hired by the DNI Madagascar team as needed for development on the NI 43-101 compliant mineral resource report and/or PEA, shall be billed by DNI to Cougar separately.

In order to maintain the Working Right and Earn In in good standing Cougar shall, in addition to payments referred to above:

  • Design, fund, manage and present to DNI a NI 43-101 compliant mineral resource report covering a pre-selected area of the project measuring approximately 300m x 900m by June 30, 2017. This area is shown in schedule B of this Agreement.
  • Complete a NI 43-101 compliant PEA using the parameters of 10,000 TPA graphite production from the Property, by October 31, 2017.
  • The mineral resource report and the PEA shall include a minimum of 3,000m of drilling to a maximum of 50m and 1000m of surface trenching.
  • The Program shall be conducted in such a way as to not unreasonably hinder future development of the Property and shall be based on sound mining practice and other applicable industry standards and practices and in material compliance with the terms of all applicable permits and laws.
  • If there are any delays in Cougar’s ability to complete the Program, beyond the reasonable control of Cougar then the date by which the Programs must be completed and the Earn In Period may be extended on prior consent in writing of DNI, with consent not being unreasonably held.
  • As of June 30, 2017, Cougar has made all payments, but they have not completed the drilling, trenching, and the NI-43-101 compliant resource report.
  • As of August 21, 2017, DNI and Cougar were able to negotiate and an extension to October 31, 2017 to complete the NI-43-101 resource report and December 31, 2017 to complete the PEA.