TORONTO, March 19, 2018 (GLOBE
NEWSWIRE) -- Dalradian Resources Inc. (TSX:DNA) (AIM:DALR)
("Dalradian" or the "Company") announces results for the three
months and year ended December 31, 2017, including closing cash and
cash equivalents of $138 million1.
Patrick F.N. Anderson, Dalradian's
President and CEO, commented: "Curraghinalt, one of the world's
best undeveloped gold projects, continues to move towards
production. We are nearing completion of our infill drilling
program and preparation of a resource update, which will then feed
into an updated feasibility study later this year.
Our planning application to build
a mine has been accepted by the government and is currently in the
review and public consultation phase. There is a thorough
permitting process in Northern Ireland and as part of that we
expect a public inquiry to be called late in 2018. We welcome this
opportunity to demonstrate to the public that we will build a safe
and environmentally responsible mine that will bring jobs and
investment to the local area.
Our expanded community relations
team has stepped up engagement to build understanding and support
for the project and our permitting team continues with preparation
of additional materials to feed into the permitting process. Nearly
1,000 people have participated in our popular tunnel and site
tours, which are open to the public, and we have had expressions of
interest by more than 800 people in employment at our proposed
mine."
1 All
amounts are in Canadian dollars unless otherwise noted
Operational
highlights as of March 15, 2018
- During Q4 2017, Dalradian completed work on its
Environmental and Social Impact Assessment in support of a planning
(permitting) application to build a mine at Curraghinalt. The
Planning Application was submitted to the Department for
Infrastructure of Northern Ireland on November 27, 2017.
- Drilling completed to date, including all 2017
drill holes, totals 29,670 m of infill drilling in 76 holes to
support the planned conversion of ounces from the inferred to
indicated mineral resource category and 14,557 m in 36 holes of
step-out drilling, up to 450 m beyond the existing resource
envelope, to support resource growth.
- In Q4 2017 and the period subsequent to year end,
Dalradian reported on 20,843 m of drilling from the 40,000-metre
drill program from a total of 23 step-out holes and 28 infill
holes. Select results included:
- Step-out: 0.74 m of 82.47 g/t gold from the V75
vein in hole 17-CT-456
- Step-out: 1.85 m of 19.27 g/t gold from the Crow
vein in hole 17-CT-440
- Step-out: 1.98 m of 32.54 g/t gold from the
106-16 vein in hole 17-CT-427
- Infill: 1.51 m of 41.04 g/t gold from the 106-16
vein in hole 17-CT-424
- Infill: 2.61 m of 36.15 g/t gold from the No. 1
vein in hole 17-CT-454
- Infill: 1.05 m of 53.64 g/t gold from the
Mullan-S vein in hole 17-CT-470
- Over Q4 2017, regional exploration continued
across the broader licence areas, with 6 prospecting samples, 1
stream sediment sample, 129 soil samples, and 794 deep overburden
samples collected. During all of 2017, 210 prospecting samples, 260
stream sediment samples, 299 soil samples, and 2,481 deep
overburden samples were collected.
Corporate and financial
highlights of Q4 2017
- Cash and cash equivalents were
$138.0 million at December 31, 2017 compared with $35.7 million at
December 31, 2016. Cash and cash equivalents increased this period
as a result of closing a private placement previously announced on
October 10, 2017. Orion Mine Finance acquired 34,013,605 common
shares of the Company and Osisko Gold Royalties acquired 19,217,687
common shares of the Company, each at a price of C$1.47 per common
share (the "Issue Price") for total gross proceeds of C$78.25
million.
- Net loss of $1.8 million ($0.01
per share) for the three months ended December 31, 2017 compared
with a net loss of $3.0 million ($0.01 per share) for the
comparable period of 2016. For the 12 months ending December 31,
2017, the Company had a net loss of $7.7 million ($0.03 per share)
compared to a net loss of $7.8 million ($0.03 per share) in the
same period of 2016.
- Expenditures on mineral property
under development for the three months ended December 31, 2017 were
$7.1 million compared with $3.7 million during the comparable
period in 2016. During Q4 2017, permitting and drilling were the
largest spending categories as work focused on finalizing the
Planning Application and completing infill and step-out drilling at
Curraghinalt. In Q4 2016, much of the activity centered on studies
for the feasibility study and the Underground Program.
- During the year ended December
31, 2017, expenditures on mineral property under development, net
of $5.4 million proceeds received from processing of mineralized
material during Q1 2017, were $19.5 million compared with $23.3
million during the comparable period in 2016.
- As of March 15, 2018, Dalradian
had 355,493,448 Common Shares issued and outstanding.
Outlook
Now that the Planning Application
has been submitted, progressing to production at Curraghinalt is
the Company's primary goal and will be advanced in 2018 through
drilling, engineering and geological studies, and environmental and
permitting activities. The Company expects to release a mineral
resource update during Q2 2018, followed by an updated FS during Q3
2018.
The 2018 work program is expected
to include up to 14,000 metres of step-out drilling at the
Curraghinalt deposit, up to 10,000 m of regional drilling and
continued exploration of the Company's large land package through
sampling across the licence areas. Permitting activities will
include preparation and submission of applications for ancillary
permits and consents and expanded stakeholder relations activities
to support the Planning Application.
The budget for 2018 is
approximately $49 million for all operational activities in
Northern Ireland and Canada, including general and administrative
costs. Drilling/Geology and Permitting/Community Relations will
utilize 50% of the operational budget, with planned expenditures
roughly similar for the two areas. Mine planning and engineering
work to produce the FS update is the third-largest component at
approximately 10% of the overall budget.
Working capital at December 31,
2017 was approximately $132 million. This financial strength
supports 2018 plans to continue exploration and other work to
increase the value of Curraghinalt, while simultaneously moving the
project through the permitting process.
Supporting
Documents
The 2017 year-end Financial
Statements (not including notes) can be found below. The full 2017
Management Discussion and Analysis and Financial Statements are
available on www.dalradian.com and on www.sedar.com.
|
Consolidated Statement of Financial
Position |
(Expressed in Canadian dollars) |
|
|
As at
Dec. 31, 2017
|
|
As at
Dec. 31, 2016
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
Cash
and cash equivalents |
$ |
137,963,176 |
|
$ |
35,719,242 |
|
Amounts receivable |
|
651,345 |
|
|
666,166 |
|
Prepaid expenses and other assets |
|
685,335 |
|
|
506,785 |
|
|
|
139,299,856 |
|
|
36,892,193 |
|
Non-Current assets: |
|
|
Restoration deposit |
|
1,057,930 |
|
|
1,032,135 |
|
Property, plant and equipment |
|
166,346,572 |
|
|
118,988,157 |
|
Exploration and evaluation assets |
|
4,600,521 |
|
|
3,943,077 |
|
|
|
172,005,023 |
|
|
123,963,369 |
|
|
$ |
311,304,879 |
|
$ |
160,855,562 |
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable and accrued liabilities |
$ |
7,139,710 |
|
$ |
4,908,196 |
|
Provision for reclamation |
|
356,181 |
|
|
347,844 |
|
|
|
7,495,891 |
|
|
5,256,040 |
|
|
|
|
Non-Current liabilities: |
|
|
Provision for reclamation |
|
695,401 |
|
|
679,124 |
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
Share capital |
|
359,737,165 |
|
|
195,974,511 |
|
Warrants |
|
47,760 |
|
|
10,745,550 |
|
Contributed surplus |
|
15,146,358 |
|
|
12,314,675 |
|
Accumulated deficit |
|
(71,817,696 |
) |
|
(64,114,338 |
) |
|
|
303,113,587 |
|
|
154,920,398 |
|
|
|
|
|
|
|
|
|
$ |
311,304,879 |
|
$ |
160,855,562 |
|
|
|
|
|
|
|
|
|
Consolidated Statement of Loss and
Comprehensive Loss |
(Expressed in Canadian dollars) |
|
|
Year ended
Dec. 31, 2017
|
|
Year ended
Dec. 31, 2016
|
|
Operating expenses: |
|
|
|
|
Salaries and related benefits |
$ |
3,266,088 |
|
$ |
3,119,915 |
|
Professional fees and consulting |
|
908,758 |
|
|
1,145,288 |
|
Share-based payments |
|
2,038,951 |
|
|
1,094,623 |
|
Investor relations and travel |
|
930,017 |
|
|
1,061,043 |
|
Office, regulatory and general |
|
1,044,007 |
|
|
762,423 |
|
Interest and bank charges |
|
14,350 |
|
|
11,454 |
|
Depreciation |
|
4,606 |
|
|
4,606 |
|
Foreign exchange (gain) loss |
|
(17,462 |
) |
|
809,272 |
|
|
$ |
8,189,315 |
|
$ |
8,008,624 |
|
|
|
|
|
|
|
Interest income |
|
485,957 |
|
|
188,174 |
|
|
|
|
|
|
|
|
Loss
and comprehensive loss for the year |
$ |
(7,703,358 |
) |
$ |
(7,820,450 |
) |
|
|
|
|
|
|
|
Loss
per share - basic and diluted |
$ |
(0.03 |
) |
$ |
(0.03 |
) |
|
|
Consolidated Statement of Shareholders'
Equity |
(Expressed in Canadian dollars) |
|
|
Year ended
Dec. 31, 2017
|
|
Year ended
Dec. 31, 2016
|
|
Share capital: |
|
|
|
|
|
|
Balance, beginning of year |
$ |
195,974,511 |
|
$ |
162,680,450 |
|
Common shares issued |
|
103,382,473 |
|
|
220,932 |
|
Warrants exercised |
|
58,971,908 |
|
|
30,869,137 |
|
Share-based payments exercised |
|
1,408,273 |
|
|
2,203,992 |
|
Balance, end of year |
$ |
359,737,165 |
|
$ |
195,974,511 |
|
|
|
|
|
|
|
|
Warrants: |
|
|
Balance, beginning of year |
$ |
10,745,550 |
|
$ |
15,019,060 |
|
Warrants exercised |
|
(9,133,252 |
) |
|
(4,229,727 |
) |
Warrants expired |
|
(1,564,538 |
) |
|
(43,783 |
) |
Balance, end of year |
$ |
47,760 |
|
$ |
10,745,550 |
|
|
|
|
|
|
|
|
Contributed surplus: |
|
|
Balance, beginning of year |
$ |
12,314,675 |
|
$ |
12,533,961 |
|
Increase from share-based payments |
|
2,342,419 |
|
|
1,183,623 |
|
Warrants expired |
|
1,564,538 |
|
|
43,783 |
|
Share-based payments exercised |
|
(1,075,274 |
) |
|
(1,446,692 |
) |
Balance, end of year |
$ |
15,146,358 |
|
$ |
12,314,675 |
|
|
|
|
|
|
|
|
Accumulated deficit: |
|
|
Balance, beginning of year |
$ |
(64,114,338 |
) |
$ |
(56,293,888 |
) |
Loss
and comprehensive loss for the year |
|
(7,703,358 |
) |
|
(7,820,450 |
) |
Balance, end of year |
$ |
(71,817,696 |
) |
$ |
(64,114,338 |
) |
|
|
|
|
|
|
|
Total shareholders' equity |
$ |
303,113,587 |
|
$ |
154,920,398 |
|
|
|
|
|
|
|
|
|
Consolidated Statement of Cash
Flows |
(Expressed in Canadian dollars) |
|
|
Year ended
Dec. 31, 2017
|
|
Year ended
Dec. 31, 2016
|
|
Cash
flows from (used in) operating activities: |
|
|
|
|
|
|
Loss
and comprehensive loss for the year |
$ |
(7,703,358 |
) |
$ |
(7,820,450 |
) |
Items not affecting cash: |
|
|
Unrealized foreign exchange loss on cash |
|
108,517 |
|
|
1,164,808 |
|
Interest income |
|
(485,957 |
) |
|
(188,174 |
) |
Depreciation |
|
4,606 |
|
|
4,606 |
|
Share-based payments |
|
2,038,951 |
|
|
1,094,623 |
|
Unrealized foreign exchange (gain) loss on restoration deposit |
|
(25,795 |
) |
|
236,795 |
|
Change in non-cash operating working capital: |
|
|
|
|
|
|
Amounts receivable |
|
135,826 |
|
|
188,603 |
|
Prepaid expenses and other assets |
|
(172,297 |
) |
|
(14,663 |
) |
Accounts payable and accrued liabilities |
|
(727,825 |
) |
|
1,529,526 |
|
Cash
flows used in operating activities |
$ |
(6,827,332 |
) |
$ |
(3,804,326 |
) |
Cash
flows from financing activities: |
|
|
|
|
|
|
Net
proceeds from common shares issued |
$ |
77,824,069 |
|
$ |
- |
|
Exercise of warrants |
|
49,838,656 |
|
|
26,639,410 |
|
Exercise of share options |
|
332,999 |
|
|
757,300 |
|
Cash
flows from financing activities |
$ |
127,995,724 |
|
$ |
27,396,710 |
|
Cash
flows from (used) in investing activities: |
|
|
|
|
|
|
Expenditures on exploration and evaluation assets.. |
$ |
(521,794 |
) |
$ |
(24,810,417 |
) |
Additions to property, plant and equipment |
|
(17,726,240 |
) |
|
(5,410,717 |
) |
Minco acquisition transaction costs |
|
(933,934 |
) |
|
- |
|
Interest received |
|
366,027 |
|
|
189,901 |
|
Cash
flows used in investing activities |
$ |
(18,815,941 |
) |
$ |
(30,031,233 |
) |
Net
change in cash and cash equivalents |
$ |
102,352,451 |
|
|
(6,438,849 |
) |
Cash
and cash equivalents, beginning of year |
|
35,719,242 |
|
|
43,322,899 |
|
Effect of exchange rate fluctuations on cash held |
|
(108,517 |
) |
|
(1,164,808 |
) |
Cash
and cash equivalents, end of year |
$ |
137,963,176 |
|
$ |
35,719,242 |
|
|
|
|
|
|
|
|
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. The Curraghinalt Project is in
permitting, with exploration ongoing to build on the positive
feasibility study released in January 2017.
For more
information:
Marla Gale
Vice President Communications
+1 416 583 5600
investor@dalradian.com
Grant Thornton UK LLP (Nominated
Adviser)
Philip Secrett / Richard Tonthat
+44 (0)20 7383 5100
Numis Securities Limited (Broker)
John Prior / James Black / Paul Gillam
+44 (0)20 7260 1000
FORWARD
LOOKING STATEMENTS
This press release contains
"forward-looking information" which may include, but is not limited
to, statements with respect to future financial or operating
performance of the Company and its subsidiaries 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 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 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, 2017 dated
March 15, 2018.
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.
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
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