Dalradian Resources Inc. Dalradian Submits Mine Planning Application; Closes C$78 Million Private Placement

 
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 
 
   [phone] 
 
   [e-mail] 
 
   Grant Thornton UK LLP (Nominated Adviser) 
 
   Philip Secrett / Richard Tonthat 
 
   [phone] 
 
   Canaccord Genuity Limited (Broker) 
 
   Henry Fitzgerald-O'Connor / Martin Davison 
 
   [phone] 
 
   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)

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