Dalradian Resources raises funds for Curraghinalt at a premium

Dalradian Resources raised funds from two investors at a premium on Tuesday to finance the expansion of its Curraghinalt project in Northern Ireland.

Pursuant to the agreements, the exploration and development company said it expected C$50m worth of investments from Orion Mine Finance II LP alongside C$28.25m worth of investments from Osisko Gold Royalties by way of a non-brokered private placement leading to gross proceeds of C$78.25m.

On top of that, Osisko also planned to exercise 6.25m warrants at $1.04 late on Tuesday bringing the total funding to approximately C$84.75m.

The issue, conducted at a 7% premium to the closing price of Dalradian's shares on 6 October, would leave Orion and Osisko holding stakes of 9.75% and 9.1% in the outfit's share capital.

Together with funds raised via all recent warrant exercises, Dalradian would be left with over C$110m of funding.

Closing of the private placements was expected on or prior to November 30, 2017 with the two subscriptions being cross conditional, the company said in a statement.

For their part, analysts at SP Angel pointed out how the covenants attached to the subscription granted Osisko and Orion rights including such that investors could maintain their pro rata interest in the company, alongside rights to match other offers for project financing.

Dalradian had also granted Orion the right to nominate a member to its board of directors alongside "a period of exclusivity with respect to the negotiation of future project financing", the analysts pointed out.

Patrick F.N. Anderson, Dalradian's CEO, said "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."