Cougar Metals, under an agreement with DNI Metals, is also working on a PEA for the firm’s Vohitsara graphite property with a deadline set for October 31.
DNI Metals (CNSX:DNI) announced that it had completed the purchase of a second graphite property in Madagascar on Wednesday October 25.
The firm said the purchase price for the property, known as the Marofody project, was $1,650,000 cash. Shares in DNI Metals gained 12.5 percent on the news. The company said with the addition of the new claims; it now has a contiguous mining tenement package comprising over 100 square kilometres.
The deal took several months to finalize as DNI Metals first entered into a non-binding agreement to buy Marofody on July 26 after it received “positive” drilling and metallurgical results from its first claim – the Vohitsara saprolitic graphite property. The firm reached a definitive agreement with Cougar Metals (ASX:CGM) in March to develop Vohitsara.
The agreement allows Cougar Metals to earn into 50 percent of the project in exchange for drill work. Under the agreement; Cougar must drill a minimum of 3,000 metres to a maximum depth of 50 metres, and additionally complete 1,000 metres of trenching. Cougar is working on a resource study and Preliminary Economic Assessment for Vohitsara. The firm requested an extension to October 31 to complete the work due to heavy rainfall and DNI granted their request.
In August, DNI Metals signed a non-binding Memorandum of Understanding agreement with Peninsula Mines (ASX:PSM) to form a cooperative joint venture. The goal of the JV is to supply and potentially produce, initially up to 20,000 tonnes per year of large flake graphite concentrate to Korean end-users from 2018. Both of DNI Metals’ graphite properties are located 50 kilometres away from a port.
The company said it has budgeted $1 million to build a modular pilot plant with the capacity to produce up to 6,000 Mt of graphite per year. The plant is expected to be on site by the end of 2017.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.