DNI Metals to Acquire Lab and Tech Facility for Graphite Business

DNI Metals Inc. (TSXV:DNI) announced that it’s signed a non-binding letter of intent (LOI) to buy a company that will help it vertically integrate its graphite business. According to the company, once the purchase is complete it will have three sources of cashflow that will help it move forward at its Madagascar-based graphite project.
For confidentiality reasons, DNI is unable to release the name of the company it is set to acquire.
As quoted in the press release:

More than 62 Canadian and US patents and technologies have been developed at this facility. With this acquisition DNI will own a number of these patents and technologies.
Making up approximately 87% of the acquisition value, are Hard Assets comprising of a 37,000 square foot, two story high facility, located in the Greater Toronto Area. All the equipment needed to operate Pilot Plants and Laboratories, that are used to complete metallurgical, clean technology, and environmental testing will now be owned by DNI upon completion of the transaction.
A building mortgage and vendor take back will account for 75% of the acquisition cost. 20% of the building is rented out at competitive rates, creating income.
The Vendor’s business model has focused on developing technologies.

DNI also explains:

Developing a large-flake graphite project, requires a significant amount of money being spent at laboratories. Drilling assays, and pilot plant / metallurgical work must be done. Having its own lab will allow DNI to fast track the development of its fully permitted graphite project and potentially save DNI and its shareholders thousands of dollars.
Every producing graphite mine must certify its products for carbon content, ash content, moisture content, particle size, and impurities. Having its own Laboratory, experts and training facility, allows DNI to provide its graphite buyers with a Secure, Reliable, and Consistent supply of graphite.

Click here to read the full DNI Metals Inc. (TSXV:DNI) press release.