Dalradian Resources Inc. Dalradian Resources Inc. : Final Results

 
TIDMDALR TIDMDALR 
 
 
   TORONTO, March 19, 2018 (GLOBE NEWSWIRE) -- Dalradian Resources Inc. 
(TSX:DNA) (AIM:DALR)  ("Dalradian" or the "Company") announces results 
for the three months and year ended December 31, 2017, including closing 
cash and cash equivalents of $138 million(1) . 
 
   Patrick F.N. Anderson, Dalradian's President and CEO, commented: 
"Curraghinalt, one of the world's best undeveloped gold projects, 
continues to move towards production. We are nearing completion of our 
infill drilling program and preparation of a resource update, which will 
then feed into an updated feasibility study later this year. 
 
   Our planning application to build a mine has been accepted by the 
government and is currently in the review and public consultation phase. 
There is a thorough permitting process in Northern Ireland and as part 
of that we expect a public inquiry to be called late in 2018. We welcome 
this opportunity to demonstrate to the public that we will build a safe 
and environmentally responsible mine that will bring jobs and investment 
to the local area. 
 
   Our expanded community relations team has stepped up engagement to build 
understanding and support for the project and our permitting team 
continues with preparation of additional materials to feed into the 
permitting process. Nearly 1,000 people have participated in our popular 
tunnel and site tours, which are open to the public, and we have had 
expressions of interest by more than 800 people in employment at our 
proposed mine." 
 
   (1)  All amounts are in Canadian dollars unless otherwise noted 
 
   Operational highlights as of March 15, 2018 
 
 
   -- During Q4 2017, Dalradian completed work on its Environmental and Social 
      Impact Assessment in support of a planning (permitting) application to 
      build a mine at Curraghinalt. The Planning Application was submitted to 
      the Department for Infrastructure of Northern Ireland on November 27, 
      2017. 
 
   -- Drilling completed to date, including all 2017 drill holes, totals 29,670 
      m of infill drilling in 76 holes to support the planned conversion of 
      ounces from the inferred to indicated mineral resource category and 
      14,557 m in 36 holes of step-out drilling, up to 450 m beyond the 
      existing resource envelope, to support resource growth. 
 
   -- In Q4 2017 and the period subsequent to year end, Dalradian reported on 
      20,843 m of drilling from the 40,000-metre drill program from a total of 
      23 step-out holes and 28 infill holes. Select results included: 
 
          -- Step-out: 0.74 m of 82.47 g/t gold from the V75 vein in hole 
             17-CT-456 
 
          -- Step-out: 1.85 m of 19.27 g/t gold from the Crow vein in hole 
             17-CT-440 
 
          -- Step-out: 1.98 m of 32.54 g/t gold from the 106-16 vein in hole 
             17-CT-427 
 
          -- Infill: 1.51 m of 41.04 g/t gold from the 106-16 vein in hole 
             17-CT-424 
 
          -- Infill: 2.61 m of 36.15 g/t gold from the No. 1 vein in hole 
             17-CT-454 
 
          -- Infill: 1.05 m of 53.64 g/t gold from the Mullan-S vein in hole 
             17-CT-470 
 
   -- Over Q4 2017, regional exploration continued across the broader licence 
      areas, with 6 prospecting samples, 1 stream sediment sample, 129 soil 
      samples, and 794 deep overburden samples collected. During all of 2017, 
      210 prospecting samples, 260 stream sediment samples, 299 soil samples, 
      and 2,481 deep overburden samples were collected. 
 
 
   Corporate and financial highlights of Q4 2017 
 
 
   -- Cash and cash equivalents were $138.0 million at December 31, 2017 
      compared with $35.7 million at December 31, 2016. Cash and cash 
      equivalents increased this period as a result of closing a private 
      placement previously announced on October 10, 2017. Orion Mine Finance 
      acquired 34,013,605 common shares of the Company and Osisko Gold 
      Royalties acquired 19,217,687 common shares of the Company, each at a 
      price of C$1.47 per common share (the "Issue Price") for total gross 
      proceeds of C$78.25 million. 
 
   -- Net loss of $1.8 million ($0.01 per share) for the three months ended 
      December 31, 2017 compared with a net loss of $3.0 million ($0.01 per 
      share) for the comparable period of 2016. For the 12 months ending 
      December 31, 2017, the Company had a net loss of $7.7 million ($0.03 per 
      share) compared to a net loss of $7.8 million ($0.03 per share) in the 
      same period of 2016. 
 
   -- Expenditures on mineral property under development for the three months 
      ended December 31, 2017 were $7.1 million compared with $3.7 million 
      during the comparable period in 2016. During Q4 2017, permitting and 
      drilling were the largest spending categories as work focused on 
      finalizing the Planning Application and completing infill and step-out 
      drilling at Curraghinalt. In Q4 2016, much of the activity centered on 
      studies for the feasibility study and the Underground Program. 
 
   -- During the year ended December 31, 2017, expenditures on mineral property 
      under development, net of $5.4 million proceeds received from processing 
      of mineralized material during Q1 2017, were $19.5 million compared with 
      $23.3 million during the comparable period in 2016. 
 
   -- As of March 15, 2018, Dalradian had 355,493,448 Common Shares issued and 
      outstanding. 
 
 
   Outlook 
 
   Now that the Planning Application has been submitted, progressing to 
production at Curraghinalt is the Company's primary goal and will be 
advanced in 2018 through drilling, engineering and geological studies, 
and environmental and permitting activities. The Company expects to 
release a mineral resource update during Q2 2018, followed by an updated 
FS during Q3 2018. 
 
   The 2018 work program is expected to include up to 14,000 metres of 
step-out drilling at the Curraghinalt deposit, up to 10,000 m of 
regional drilling and continued exploration of the Company's large land 
package through sampling across the licence areas. Permitting activities 
will include preparation and submission of applications for ancillary 
permits and consents and expanded stakeholder relations activities to 
support the Planning Application. 
 
   The budget for 2018 is approximately $49 million for all operational 
activities in Northern Ireland and Canada, including general and 
administrative costs. Drilling/Geology and Permitting/Community 
Relations will utilize 50% of the operational budget, with planned 
expenditures roughly similar for the two areas. Mine planning and 
engineering work to produce the FS update is the third-largest component 
at approximately 10% of the overall budget. 
 
   Working capital at December 31, 2017 was approximately $132 million. 
This financial strength supports 2018 plans to continue exploration and 
other work to increase the value of Curraghinalt, while simultaneously 
moving the project through the permitting process. 
 
   Supporting Documents 
 
   The 2017 year-end Financial Statements (not including notes) can be 
found below. The full 2017 Management Discussion and Analysis and 
Financial Statements are available on www.dalradian.com and on 
www.sedar.com. 
 
 
 
 
 
Consolidated Statement of Financial Position 
(Expressed in Canadian dollars) 
 
                                           As at              As at 
                                        Dec. 31, 2017      Dec. 31, 2016 
ASSETS 
Current assets: 
Cash and cash equivalents              $   137,963,176    $    35,719,242 
Amounts receivable                             651,345            666,166 
Prepaid expenses and other assets              685,335            506,785 
                                           139,299,856         36,892,193 
Non-Current assets: 
Restoration deposit                          1,057,930          1,032,135 
Property, plant and equipment              166,346,572        118,988,157 
Exploration and evaluation assets            4,600,521          3,943,077 
                                           172,005,023        123,963,369 
                                       $   311,304,879    $   160,855,562 
LIABILITIES AND SHAREHOLDERS' EQUITY 
Current liabilities: 
Accounts payable and accrued 
 liabilities                           $     7,139,710    $     4,908,196 
Provision for reclamation                      356,181            347,844 
                                             7,495,891          5,256,040 
 
Non-Current liabilities: 
Provision for reclamation                      695,401            679,124 
 
Shareholders' equity: 
Share capital                              359,737,165        195,974,511 
Warrants                                        47,760         10,745,550 
Contributed surplus                         15,146,358         12,314,675 
Accumulated deficit                        (71,817,696)       (64,114,338) 
                                           303,113,587        154,920,398 
 
                                       $   311,304,879    $   160,855,562 
 
 
 
 
 
 
 
 
 
Consolidated Statement of Loss and Comprehensive Loss 
(Expressed in Canadian dollars) 
 
                       Year ended               Year ended 
                      Dec. 31, 2017            Dec. 31, 2016 
Operating 
expenses: 
Salaries and 
 related 
 benefits                $    3,266,088            $    3,119,915 
Professional 
 fees and 
 consulting                     908,758                 1,145,288 
Share-based 
 payments                     2,038,951                 1,094,623 
Investor 
 relations and 
 travel                         930,017                 1,061,043 
Office, 
 regulatory and 
 general                      1,044,007                   762,423 
Interest and 
 bank charges                    14,350                    11,454 
Depreciation                      4,606                     4,606 
Foreign 
 exchange 
 (gain) loss                    (17,462)                  809,272 

                         $    8,189,315            $    8,008,624 
 
Interest income                 485,957                   188,174 
 
Loss and 
 comprehensive 
 loss for the 
 year                    $   (7,703,358)           $   (7,820,450) 
 
Loss per share 
 - basic and 
 diluted                 $        (0.03)           $        (0.03) 
 
 
 
 
 
 
 
 
 
Consolidated Statement of Shareholders' Equity 
(Expressed in Canadian dollars) 
 
                                         Year ended         Year ended 
                                        Dec. 31, 2017      Dec. 31, 2016 
Share capital: 
Balance, beginning of year             $   195,974,511    $   162,680,450 
Common shares issued                       103,382,473            220,932 
Warrants exercised                          58,971,908         30,869,137 
Share-based payments exercised               1,408,273          2,203,992 
Balance, end of year                   $   359,737,165    $   195,974,511 
 
Warrants: 
Balance, beginning of year             $    10,745,550    $    15,019,060 
Warrants exercised                          (9,133,252)        (4,229,727) 
Warrants expired                            (1,564,538)           (43,783) 
Balance, end of year                   $        47,760    $    10,745,550 
 
Contributed surplus: 
Balance, beginning of year             $    12,314,675    $    12,533,961 
Increase from share-based payments           2,342,419          1,183,623 
Warrants expired                             1,564,538             43,783 
Share-based payments exercised              (1,075,274)        (1,446,692) 
Balance, end of year                   $    15,146,358    $    12,314,675 
 
Accumulated deficit: 
Balance, beginning of year             $   (64,114,338)   $   (56,293,888) 
Loss and comprehensive loss for the 
 year                                       (7,703,358)        (7,820,450) 
Balance, end of year                   $   (71,817,696)   $   (64,114,338) 
 
Total shareholders' equity             $   303,113,587    $   154,920,398 
 
 
 
 
 
 
 
 
 
Consolidated Statement of Cash Flows 
(Expressed in Canadian dollars) 
 
                                                            Year ended         Year ended 
                                                           Dec. 31, 2017      Dec. 31, 2016 
Cash flows from (used in) operating activities: 
Loss and comprehensive loss for the year                  $    (7,703,358)   $    (7,820,450) 
Items not affecting cash: 
Unrealized foreign exchange loss on cash                          108,517          1,164,808 
Interest income                                                  (485,957)          (188,174) 
Depreciation                                                        4,606              4,606 
Share-based payments                                            2,038,951          1,094,623 
Unrealized foreign exchange (gain) loss on restoration 
 deposit                                                          (25,795)           236,795 
Change in non-cash operating working capital: 
Amounts receivable                                                135,826            188,603 
Prepaid expenses and other assets                                (172,297)           (14,663) 
Accounts payable and accrued liabilities                         (727,825)         1,529,526 
Cash flows used in operating activities                   $    (6,827,332)   $    (3,804,326) 
Cash flows from financing activities: 
Net proceeds from common shares issued                    $    77,824,069    $             - 
Exercise of warrants                                           49,838,656         26,639,410 
Exercise of share options                                         332,999            757,300 
Cash flows from financing activities                      $   127,995,724    $    27,396,710 
Cash flows from (used) in investing activities: 
Expenditures on exploration and evaluation assets..       $      (521,794)   $   (24,810,417) 
Additions to property, plant and equipment                    (17,726,240)        (5,410,717) 
Minco acquisition transaction costs                              (933,934)                 - 
Interest received                                                 366,027            189,901 
Cash flows used in investing activities                   $   (18,815,941)   $   (30,031,233) 
Net change in cash and cash equivalents                   $   102,352,451         (6,438,849) 
Cash and cash equivalents, beginning of year                   35,719,242         43,322,899 
Effect of exchange rate fluctuations on cash held                (108,517)        (1,164,808) 
Cash and cash equivalents, end of year                    $   137,963,176    $    35,719,242 
 
 
 
   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. The Curraghinalt 
Project is in permitting, with exploration ongoing to build on the 
positive feasibility study released in January 2017. 
 
   For more information: 
 
   Marla Gale 
 
   Vice President Communications 
 
   [phone] 
 
   [e-mail] 
 
   Grant Thornton UK LLP (Nominated Adviser) 
 
   Philip Secrett / Richard Tonthat 
 
   [phone] 
 
   Numis Securities Limited (Broker) 
 
   John Prior / James Black / Paul Gillam 
 
   [phone] 
 
   FORWARD LOOKING STATEMENTS 
 
   This press release contains "forward-looking information" which may 
include, but is not limited to, statements with respect to 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 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, 2017 dated March 15, 2018. 
 
   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

March 19, 2018 03:00 ET (07:00 GMT)

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