Dalradian Resources' shares rocket after C$537m Orion bid accepted

Under the terms of the deal, each shareholder in Dalradian would receive cash consideration of C$1.47 for each share held in the company, valuing its total equity at approximately C$537m.

The figure represents a 62% premium on the price of its shares as of the close of trading on the Toronto Stock Exchange on Wednesday.

Under the terms of the deal, Orion will buy only 80% of Dalaradian’s equity, of which it already owns 9.5%, while several of Dalradian’s senior managers and Osisko Gold Royalties will retain their shares.

Patrick Anderson, chief executive of Dalradian, said: "Orion and Osisko are showing great confidence in Northern Ireland, our high grade Curraghinalt project and our West Tyrone workforce. Their goals as strategic investors are completely aligned with ours - to secure planning permission for an underground gold mine and continue advancing the project in a way that benefits all our stakeholders."

The Curraghinalt project is an untapped gold deposit that is reckoned to hold 1.4m ounces of gold reserves, worth $1.8bn at today’s prices.

However, the company has yet to secure the permits needed to develop a mine at the site in West Tyrone.

As of 1515 BST, Dalradian Resources’ shares were up 49.54% at 81.50p.