Dalradian Resources Inc. Dalradian To Receive C$84.75 Million Through Private Placement And Warrant Exercise

 
TIDMDALR 
 
 
   Dalradian to receive C$84.75 million through Private Placement and 
Warrant Exercise 
 
   TORONTO, ONTARIO--(Marketwired - Oct. 10, 2017) - 
 
   NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR 
DISSEMINATION IN THE UNITED STATES 
 
   Dalradian Resources Inc. (TSX:DNA)(AIM:DALR) ("Dalradian" or the 
"Company") is pleased to announce that it has entered into subscription 
agreements with each of Orion Mine Finance II LP ("Orion") and Osisko 
Gold Royalties Ltd ("Osisko") pursuant to which Orion will make an 
investment of C$50 million and Osisko will make an investment of C$28.25 
million into the Company by way of a non-brokered private placement, for 
gross proceeds of C$78.25 million (the "Private Placement"). In addition, 
Osisko plans to exercise 6.25 million warrants at $1.04 later today, 
bringing the total funding to approximately C$84.75 million 
(approximately GBP51 million). 
 
   Pursuant to the Private Placement, Orion will acquire 34,013,605 common 
shares of Dalradian (the "Common Shares") and Osisko will acquire 
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. The Company intends to use the proceeds of the Private 
Placement for general working capital purposes. 
 
   Upon closing of the Private Placement, Orion will own approximately 
9.75% of Dalradian's issued and outstanding common shares and Osisko 
will own approximately 9.1% of Dalradian's issued and outstanding common 
shares, in each case after giving effect to the warrant exercise by 
Osisko. 
 
   Patrick F.N. Anderson, Dalradian's CEO, commented, "This is a strong 
vote of confidence in both the Curraghinalt Gold Project and in Northern 
Ireland as an investment destination by two highly respected mining 
finance groups. Today's placement, together with all recent warrant 
exercises, will provide the company with additional equity funding in 
excess of C$110 million. This means that the company is now well-funded 
to move Curraghinalt through permitting, while continuing to expand and 
improve the value of the project through further investment in 
exploration and engineering." 
 
   Michael Barton, Portfolio Manager at Orion Resource Partners said, 
"Orion is delighted to become a meaningful investor in one of the most 
exciting undeveloped gold deposits globally. We look forward to working 
with Dalradian as Curraghinalt moves through permitting and into 
construction." 
 
   Sean Roosen, Chairman and CEO of Osisko said, "We are very pleased to 
participate in the advancement of one of the world's top undeveloped 
gold projects in a new emerging gold district. We look forward to 
working with Dalradian management, Orion and Dalradian's stakeholders to 
provide the necessary funding for the realization and development of the 
Curraghinalt Gold Project." 
 
   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. 
 
   Closing of the Private Placement is anticipated to occur on or prior to 
November 30, 2017 and the subscription by each of Orion and Osisko are 
cross conditional. Closing of the Private Placement is also subject to 
certain other conditions, including the submission by the Company of its 
application to obtain planning permission from the Department of 
Infrastructure (Northern Ireland) to build a mine at the Curraghinalt 
Gold Project and the receipt of all required regulatory approvals, 
including the conditional approval of the Toronto Stock Exchange. The 
Company intends to apply for the admission of the Common Shares issuable 
in connection with the Private Placement on the AIM market of the London 
Stock Exchange as soon as practicable. 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. 
 
   This news release does not constitute an offer to sell or a solicitation 
of an offer to buy nor shall there be any sale of any of the securities 
in any jurisdiction in which such offer, solicitation or sale would be 
unlawful. The securities have not been and will not be registered under 
the U.S. Securities Act, or the securities laws of any state of the 
United States and may not be offered or sold within the United States 
(as defined in Regulation S under the U.S. Securities Act) unless 
registered under the U.S. Securities Act and applicable state securities 
laws or pursuant to an exemption from such registration requirements. 
 
   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. 
 
   FORWARD LOOKING STATEMENTS 
 
   This press release contains "forward-looking information" which may 
include, but is not limited to, statements with respect to completion of 
the Private Placement, receipt of all regulatory and stock exchange 
approvals, the use of proceeds, future financial or operating 
performance of the Company and its subsidiary 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 completion of the Private Placement, 
receipt of all regulatory and stock exchange approvals, 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, that the results of the ESIA will be positive 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. 
 
   Contact 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] 
 
 
 
   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

October 10, 2017 02:00 ET (06:00 GMT)

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