Dalradian Resources Inc.
TSX : DNA
AIM : DALR

Dalradian Resources Inc.

September 15, 2015 08:01 ET

Dalradian Resources Inc. Announces C$35 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwired - Sept. 15, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR 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 an agreement with a syndicate of investment dealers led by Cormark Securities Inc. and including Dundee Securities Ltd., BMO Capital Markets, Canaccord Genuity Corp., RBC Capital Markets, Beacon Securities Limited, Clarus Securities Inc., Euro Pacific Canada, Inc. and Global Maxfin Capital Inc. (the "Underwriters"), which have agreed to purchase, on a bought deal basis, 43,750,000 units of Dalradian (the "Units") at a purchase price of C$0.80 per Unit (the "Offering Price"), for aggregate gross proceeds in the amount of C$35 million (the "Offering"). Each Unit will consist of one common share of Dalradian (a "Unit Share") and one common share purchase warrant (a "Warrant"), each Warrant being exercisable to acquire one common share of Dalradian at a purchase price of C$1.04 for a period of 24 months following the closing date.

In addition, the Company has granted the Underwriters an option to purchase additional Units at the Offering Price to raise additional gross proceeds of up to 15% of the Offering, for a period of 30 days after and including the Closing Date to cover over-allotments, if any, and for market stabilization purposes.

The offering is scheduled to close on or about October 7, 2015, at which point the Company is expected to have 207,640,205 common shares issued and outstanding (before giving effect to the exercise of the over allotment option). Closing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities. The Company intends to apply for the admission of the common shares issuable in connection with the Offering on the AIM market of the London Stock Exchange as soon as practicable.

The net proceeds from the offering will be used to fund exploration activities at the Curraghinalt Gold Project and for general corporate purposes.

This press release shall not constitute an offer to sell or 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 will not be and have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

About Dalradian

Dalradian Resources Inc. is a gold exploration and development company that is focused on advancing its high-grade Curraghinalt Gold Project located in Northern Ireland, United Kingdom. The Company is in the midst of a work program in support of a planning (permitting) application for construction of an operating mine at Curraghinalt. Components of the program include a feasibility study, an environmental impact assessment, infill drilling and underground exploration (885 metres of development with two test stopes).

Forward Looking Statements:

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, the completion of the offering, receipt of requisite regulatory approvals, the use of proceeds, test work and confirming results from work performed to date, estimation of mineral resources, completion of the feasibility study, environmental impact assessment and underground program and the realization of the expected economics of Curraghinalt. 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 continued political stability in Northern Ireland, that permits required for the Company's operations will be obtained in a timely basis in order to permit the Company to proceed on schedule with its planned development and exploration programs, that skilled personnel and contractors will be available as the Company's operations continue to grow, that the price of gold will be at levels that render the Company'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 estimates, and that the assumptions contained in the Company's preliminary economic assessment are accurate and complete.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company 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 exploration activities; actual results of reclamation activities; conclusions of economic evaluations; meeting various expected cost estimates; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; 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.

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 news 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

  • Dalradian Resources Inc.
    Marla Gale
    Vice President Communications
    +1 416 583 5622
    investor@dalradian.com

    Canaccord Genuity Limited (Nominated Adviser and Broker)
    Henry Fitzgerald-O'Connor
    +44 20 7523 8000

    Canaccord Genuity Limited (Nominated Adviser and Broker)
    Oliver Donaldson
    +44 20 7523 8000

    Finsbury (UK financial communications)
    Charles O'Brien
    +44 20 7251 3801
    Charles.O'Brien@Finsbury.com

    Finsbury (UK financial communications)
    Sam Best
    +44 20 7251 3801
    Sam.Best@Finsbury.com