TIDMDALR TIDMDALR
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 million(1) .
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 As at
Dec. 31, 2017 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 Year ended
Dec. 31, 2017 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 Year ended
Dec. 31, 2017 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 Year ended
Dec. 31, 2017 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
http://www.dalradian.com/
(END) Dow Jones Newswires
March 19, 2018 03:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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