Massive RNS10 Oct 2017 10:35
Big US funds buy at 12% premium putting in $80M CAD
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 f