TORONTO--(BUSINESS WIRE)--DNI Metals Inc. (DNI: CSE; DNMKF: OTC) ("DNI" or the "Company")
On September 24, 2018 a Settlement Agreement (the “Agreement”) was reached after arbitration between DNI and Cougar Metals NL (“Cougar”) in regards to the Cougar earn-in to Vohitsara, DNI’s graphite project in Madagascar.
On July 23, 2019, DNI issued Cougar a default notice claiming that Cougar had breached the non-disparagement provision in the Agreement. Cougar requested an arbitration to dispute the default. A hearing was held on November 18, 2019 in Toronto. On December 2, 2019 a decision was handed down by the arbitrator in which it was decided that;
- Cougar had breached the non-disparagement provisions of the Agreement;
- The DNI's notice of breach was justified and Cougar’s claim was dismissed;
- DNI was unable to prove that it had incurred financial damages as a result of Cougar’s breach;
- DNI’s request for a set off against, or cancellation of, the payment to be made by DNI to Cougar under the Agreement was dismissed; and
- The payment that was due to Cougar on July 25, 2019 is now due two days after the date of this decision.
However, on November 5, 2019 DNI issued Cougar a second default notice for continued failure to observe the non-disparagement and confidentiality obligations of the Agreement. As applicable with the first default notice, the Agreement provides that DNI is entitled to suspend payment of the balance of the amount owing under the Agreement pending determination of any dispute regarding Cougar’s breach by an arbitrator.
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