Dalradian Resources Inc. (TSX:DNA) (AIM:DALR) is pleased to announce the closing of its bought deal prospectus offering pursuant to which the Company issued 50,312,500 units of the Company (which included the exercise in full of the over-allotment option) at a price of C$0.80 per Unit, for gross proceeds in the amount of C$40,250,000. The Offering was conducted through a syndicate of underwriters 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. Each Unit consisted of one common share of Dalradian and one common share purchase warrant each Warrant being exercisable to acquire one common share of Dalradian at a purchase price of C$1.04 until October 7, 2017.
The net proceeds from the Offering will be used to fund exploration, land acquisition and permitting activities at the Curraghinalt Gold Project and for general corporate purposes.
M&G Investment Management Limited on behalf of its client Vanguard Precious Metals and Mining Fund, which was not previously a shareholder of Dalradian, purchased 22,812,500 Units under the Offering, so that it now holds approximately 10.65% of the issued and outstanding common shares of the Company.
Certain directors and officers of the Company purchased Units in the Offering, which participation is considered to be a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Shareholders in Special Transactions (“MI 61-101”). The Company has determined that such “related party transactions” are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to Sections 5.5(a) and 5.7(a) of MI 61-101, on the basis that the fair market value of the transactions, insofar as they involve interested parties, does not exceed 25% of the Company’s market capitalization.
The table below shows the resulting change in holding for each director or officer following closing of the Offering:
----------------------------------------------------------------------------
No. of Units
being Total Total Percentage
purchased in warrants held shares held shareholding
Individual the Offering (post-closing) (post-closing) (post-closing)
----------------------------------------------------------------------------
Patrick Anderson
(CEO &
Chairman) 125,000 180,556 3,666,361 1.71%
----------------------------------------------------------------------------
Patrick Downey
(Director) 80,000 80,000 180,000 0.08%
----------------------------------------------------------------------------
Keith McKay
(CFO) 12,500 12,500 323,500 0.15%
----------------------------------------------------------------------------
Sean Roosen
(Director) 62,500 229,166 1,653,083 0.77%
----------------------------------------------------------------------------
Jim Rutherford
(Director) 62,500 62,500 62,500 0.03%
----------------------------------------------------------------------------
The Company has applied for the admission of the 50,312,500 Common Shares issued in connection with the Offering to trading on the AIM market of the London Stock Exchange and expects admission to occur on October 8, 2015. Dalradian will have 214,202,705 Common Shares issued and outstanding following admission.
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 Resources Inc.
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).
Kootenay Silver Inc. (TSX-V: KTN) is pleased to announce that the... READ MORE
U.S. Gold Corp. (NASDAQ: USAU), is pleased to announce that it h... READ MORE
Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) (FWB: GGA1) is ple... READ MORE
Imperial Metals Corporation (TSX:III) reports quarterly copper an... READ MORE
ALX Resources Corp. (TSX-V: AL) (FSE: 6LLN) (OTC: ALXEF) is pleas... READ MORE