Dalradian Resources Inc. Dalradian Submits Mine Planning Application; Closes C$78 Million Private Placement
28 November 2017 - 3:45AM
UK Regulatory
TIDMDALR
Dalradian submits mine planning application; closes C$78 million private
placement
TORONTO, November 27, 2017 /Marketwired/ - Dalradian Resources Inc.
(TSX:DNA; AIM:DALR) ("Dalradian" or the "Company") is pleased to
announce that it has submitted its planning application to permit the
building of an underground mine and associated infrastructure at the
Curraghinalt gold deposit (the "Planning Application") to the Northern
Ireland Department for Infrastructure ("DfI"). The Company also
announces closing of the private placement financing (the "Private
Placement") with Orion Mine Finance Fund II LP ("Orion") and Osisko Gold
Royalties Ltd ("Osisko") for gross proceeds of C$78.25 million.
Patrick F. N. Anderson, Dalradian's President and CEO, commented: "This
is an exciting day for Dalradian and for Northern Ireland. It is the
culmination of seven years of exploration, engineering and environmental
work on the Curraghinalt deposit and financings that have raised more
than C$260 million for our work in Northern Ireland. We have transformed
the project from a small, early-stage deposit to one of the best gold
projects on the planet. Building and operating a mine at the
Curraghinalt deposit will create at least 350 permanent direct jobs and
is expected to give a US$1 billion boost to the local economy over the
25-year life of mine in the planning application. This will be one of
the largest foreign direct investments to be made in Northern Ireland in
recent years.
Orion and Osisko are two of the top mine finance groups in the world.
Their investment in Dalradian is a strong vote of confidence in our
project and Northern Ireland. As a result, we are entering permitting
with substantial funding that will allow us to continue to explore and
further prove up the potential of the project. Our ongoing investment
will ensure continued economic benefits to Northern Ireland through our
training initiatives, jobs and supplier opportunities.
We are proud of the rigour and quality of the application. It comprises
more than 10,000 pages, including nearly 40 detailed reports by
independent experts from globally recognized environmental consulting
firms. I am confident our submission demonstrates that we can deliver a
sensitively designed and well-thought-out project that will provide
economic benefits to the region and solid returns to our shareholders
using environmental best practices. We appreciate the contributions of
local residents, consultants, regulators and other stakeholders whose
input has contributed to our plans for a mine at Curraghinalt."
The Planning Application Process
The Planning Application to permit the building of a mine at
Curraghinalt is supported by an Environmental Statement (ES), including
contributions from many local agencies and independent experts.
Dalradian has held over 40 meetings with government regulators along
with consultation sessions attended by more than 270 people to gain
vital information needed to finalize the Planning Application. In
addition, more than 800 people have attended our tunnel and site tours
since the summer of 2016 to learn more about the project.
The Curraghinalt Project was deemed "regionally significant" and
therefore the decision to grant planning approval rests with the DfI.
Now that the Planning Application has been submitted to the DfI, the
application will follow the Planning Review process:
-- Validation of Planning Application
-- First round of consultation by DfI with the public and statutory
consultees, including regulatory agencies and DfI consultants
-- Request for further environmental information, if necessary
-- Further consultation by DfI with the public and statutory consultees
-- DfI officers' recommendation to the Minister for Infrastructure/Permanent
Secretary
-- Decision
It is anticipated that this part of the process would take up to one
year. Given the scale of the project, it is expected that a Public Local
Inquiry ("PLI") will be held prior to a final decision being taken,
which takes approximately one year.
The Planning Application will soon be publicly available at
https://www.planningni.gov.uk/index/tools/public-access-info.htm.
Investment by Orion and Osisko
Pursuant to the Private Placement previously announced on October 10,
2017, Orion has acquired 34,013,605 common shares of Dalradian (the
"Common Shares") and Osisko has acquired 19,217,687 Common Shares, each
at a price of C$1.47 per Common Share (the "Issue Price"). The Issue
Price represents a 7% premium to the closing price of the Common Shares
on the Toronto Stock Exchange on October 6, 2017 being the last trading
day prior to the announcement of the Private Placement. The Company
intends to use the proceeds of the Private Placement for general working
capital purposes.
Following the closing of the Private Placement, Orion owns approximately
9.6% of Dalradian's issued and outstanding common shares and Osisko owns
approximately 8.9% of Dalradian's issued and outstanding common shares.
The subscription agreements entered into with Orion and Osisko contain
various covenants and rights, including among other things, a standstill,
participation rights in favour of the investors to maintain their pro
rata interest in Dalradian and rights to match other offers for project
financing. In addition, Dalradian has granted Orion the right to
designate one nominee to the board of directors of Dalradian and a
period of exclusivity with respect to the negotiation of future project
financing.
Application has been made for the 53,231,292 Common Shares issued under
the Private Placement, which will rank pari passu with the existing
common shares in issue, to be admitted to trading on AIM and admission
is expected to occur at 8:00 am (UK time) on 28 November. Following the
Private Placement, the Company has in issue 355,267,888 common shares.
This figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify
their interest in, or a change to their interest in, the Company under
the Financial Conduct Authority's Disclosure Guidance and Transparency
Rules. All securities issued in the Private Placement will be subject to
a statutory hold period in Canada of four months and one day from
closing.
About Dalradian Resources Inc.
Dalradian Resources Inc. is a mineral exploration and development
company that is focused on advancing its high-grade Curraghinalt Gold
Project located in Northern Ireland, United Kingdom.
For more information:
Marla Gale
Vice President Communications
+1 416 583 5600
investor@dalradian.com
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / Richard Tonthat
+44 (0)20 7383 5100
Canaccord Genuity Limited (Broker)
Henry Fitzgerald-O'Connor / Martin Davison
+44 (0)20 7523 8000
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the timing
and review process in connection with the Planning Application and PLI,
AIM admission and the use of proceeds in connection with the Private
Placement, future financial or operating performance of the Company and
its subsidiaries and its mineral project, the future price of metals,
test work and confirming results from work performed to date, the
estimation of mineral resources and mineral reserves, the realization of
mineral resource and mineral reserve estimates, the timing and amount of
estimated future production, costs of production, capital, operating and
exploration expenditures, costs and timing of the development of new
deposits, costs and timing of future exploration, requirements for
additional capital, government regulation of mining operations,
environmental risks, reclamation expenses, title disputes or claims,
limitations of insurance coverage, the timing and possible outcome of
pending regulatory matters and the realization of the expected
production, economics and mine life of the Curraghinalt gold deposit.
Often, but not always, forward-looking statements can be identified by
the use of words and phrases such as "plans," "expects," "is expected,"
"budget," "scheduled," "estimates," "forecasts," "intends," "anticipates,
" or "believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results "may,
" "could," "would," "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and are based on
various assumptions, such as the timing and review process in connection
with the Planning Application and PLI remaining in line with
expectations, AIM admission occurring as expected, the use of proceeds
being applied as intended, continued political stability in Northern
Ireland, that permits required for Dalradian's operations will be
obtained in a timely basis in order to permit Dalradian to proceed on
schedule with its planned exploration and mine development, construction
and production programs, that skilled personnel and contractors will be
available as Dalradian's operations commence and continue to grow
towards production and mining operations, that the price of gold will be
at levels that render the Dalradian's mineral project economic, that the
Company will be able to continue raising the necessary capital to
finance its operations and realize on mineral resource and mineral
reserve estimates and current mine plans, that the assumptions contained
in the Company's Technical Report dated January 25, 2017 are accurate
and complete and that a permitting application for mine construction
will be approved .
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Dalradian to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, among others,
general business, economic, competitive, political and social
uncertainties; the actual results of current and future exploration
activities; the actual results of reclamation activities; conclusions of
economic evaluations; meeting various expected cost estimates; changes
in project parameters and/or economic assessments as plans continue to
be refined; future prices of metals; possible variations of mineral
grade or recovery rates; the risk that actual costs may exceed estimated
costs; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; political instability; delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information Form
for the year ended December 31, 2016 dated March 23, 2017.
Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements contained
herein are made as of the date of this press release and the Company
disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results, except
as may be required by applicable securities laws. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Dalradian Resources Inc. via Globenewswire
http://www.dalradian.com/
(END) Dow Jones Newswires
November 27, 2017 11:45 ET (16:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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