Monday 19 November 2018

Dalradian to delist following takeover of gold miner active in Tyrone

Mine workers use a jumbo drill to make holes for explosives in the underground tunnels inside the Curraghinalt gold project, near Omagh, Co Tyrone. Photo: Bloomberg
Mine workers use a jumbo drill to make holes for explosives in the underground tunnels inside the Curraghinalt gold project, near Omagh, Co Tyrone. Photo: Bloomberg

Margaret Canning

A CANADIAN exploration business that plans to develop a gold mine in Co Tyrone will become a private company following a CAN $537m (€346m) disposal by most of its shareholders.

Dalradian Resources, the parent company of Dalradian Gold Ltd, will delist from the stock exchange in Toronto and the AIM in London if the deal goes ahead. The transaction involves an affiliate of Orion Mine Finance buying just under 80pc of the shares in Dalradian Resources.

Orion invested CAN $50m in Dalradian Resources in November last year.

Remaining shareholders including Osisko Gold Royalties, led by Dalradian board member Sean Roosen, will keep a 20.4pc shareholding.

Dalradian Gold said it would continue its activities during and after the transition "in line with our plans and market conditions".

The company lodged a 10,000-page planning application for a gold mine at Curraghinalt near Greencastle in November. It said the project would support 350 jobs and generate £750m over 25 years. But the planning process is the subject two judicial reviews by opposing groups.

Mr Roosen, the chairman and CEO of Osisko, which invested CAN$28m in Dalradian in November, was a founding board member of Dalradian.

Osisko said: "The Osisko management team has deep experience in developing and operating mines, which will be of great value to the DGL operations team over the coming years."

Dalradian shareholders will consider the deal in August, with the transaction expected to complete in September or October.

Oskar Lewnowski, chief investment officer of Orion, said: "We are very pleased to expand our ownership in one of the world's best undeveloped gold deposits. Curraghinalt gets more exciting as additional work is completed, the recent positive resource update being just the latest example.

"The team has done an outstanding job of growing the deposit and advancing it through the feasibility stage."

Irish Independent

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