TORONTO, May 03, 2018 (GLOBE
NEWSWIRE) -- Dalradian Resources Inc. (TSX:DNA) (AIM:DALR)
("Dalradian" or the "Company") announces results for the three
months ended March 31, 2018, including closing cash and cash
equivalents of $126.9 million1.
Patrick F.N. Anderson, Dalradian's
President and CEO, commented:
"Now that our resource drilling is
complete, we expect to issue an updated resource shortly that will
feed into an updated feasibility study in Q3. Exploration in 2018
will continue to test extensions of Curraghinalt as well as several
regional targets.
Since February, our planning
application has been progressing through review and consultation by
the authorities. We have increased our outreach to a broad range of
stakeholders to build understanding about our proposed mine and the
many opportunities it brings to Northern Ireland. I am proud to
report that we have had 1,000 visitors to our public site tours and
1,400 employment inquiries."
1 All amounts are in Canadian dollars unless otherwise
noted
Operational
highlights as of May 1, 2018
- Commencement of public and statutory consultation
processes for the permitting application to build a mine at the
Curraghinalt deposit (the "Planning Application").
- Continued community relations activities,
including welcoming our 1,000th local
visitor on a tunnel tour and site visit.
- Receipt of approximately 1,400 submissions of
interest in careers at the proposed mine, with approximately
one-third of applicants coming from the local area.
- Completion of a technical work program in
preparation for updates to the 2016 NI 43-101 Mineral Resource
Estimate ("Mineral Resource"), including completion of 6,324 metres
of infill drilling in 22 holes to close off the infill drilling
program totalling 29,026 metres in 76 holes. This drilling has
extended the strike length of the system and has identified a
number of new veins.
- Completion of 5,275 metres of drilling in 12
holes in peripheral areas of Curraghinalt to test continuity of the
deposit.
- Continued progression of the technical work
program for an update of the feasibility study ("FS"), including
advancement of the geotechnical model and further work on
ore-sorting technology.
- The Company has an active program in place to
meet the requirements of the General Data Protection Regulation
("GDPR") that becomes effective in Northern Ireland on May 25,
2018. GDPR will supersede the UK Data Protection Act 1998 and
expands the rights of individuals to control how their personal
information is collected and processed. GDPR places a range of new
obligations on the Company to be more accountable for data
protection.
Corporate and financial
highlights of Q1 2018
- Cash and cash equivalents were
$126.9 million at March 31, 2018 compared with $138.0 million at
December 31, 2017.
- Net loss of $1.4 million ($0.00
per share) for the three months ended March 31, 2018 compared with
a net loss of $1.3 million ($0.01 per share) for the comparable
period of 2017.
- Expenditures on mineral property
under development for the three months ended March 31, 2018 were
$6.1 million compared with $2.5 million, net of expected receipt
from processing of mineralized material, during the comparable
period in 2017. During Q1 2018, permitting and drilling were the
largest spending categories as work focused on supporting the
Planning Application and infill and step-out drilling.
- As of May 1, 2018, Dalradian had
355,493,448 common shares issued and outstanding and 367,579,114
common shares outstanding on a fully diluted shares basis.
Outlook
Taking Curraghinalt to production
is the Company's primary goal and will be advanced in 2018 through
further 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. In addition, Dalradian will also
continue to explore its large land package to delineate targets for
drilling. 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 overall budget for 2018 is
approximately $49 million for operational activities in Northern
Ireland and Canada, including general and administrative costs. The
two major items that represent approximately 50% of the operational
budget are exploration and permitting, with planned expenditures
roughly similar for the two areas. Mine planning and engineering
work to produce an updated FS is the third-largest component at
approximately 10% of the overall budget. During Q1 2018,
operational spending totalled approximately $9 million.
Working capital at March 31, 2018
was $124 million compared to $132 million at December 31, 2017.
This financial strength supports 2018 plans to continue exploration
and other work to increase the value of the Northern Ireland
Properties, while simultaneously moving Curraghinalt through the
permitting process.
Written submissions to the
Company's consultation events held in November 2016 demonstrated
majority support for the project. However, as with most regionally
significant planning applications, there are a number of people who
are currently opposed to the project. The planning system in
Northern Ireland allows and encourages all interested parties to
make their views known and to submit the specific reasons for their
support or opposition. The Company respects the planning process in
Northern Ireland and is confident the project will succeed because
it is a responsible development that will bring sustainable
economic and social benefits to the local area and Northern Ireland
as a whole for years to come.
It is common, with respect to
regionally significant planning applications in Northern Ireland,
to have multiple legal challenges, including judicial reviews. A
judicial review ("JR") is a type of court proceeding in which a
judge reviews the lawfulness of a decision or action made by a
public body; they are a challenge to the way in which a decision
has been made, rather than the conclusion reached. Two JRs have
been brought against government departments in Northern Ireland
relating to decisions taken by these departments (on planning and
environmental grounds) and Dalradian is a notice party. The first
JR concerns the decision by the Department for Infrastructure to
accept the Company's Planning Application and has a hearing date in
mid-June. The second JR concerns the decision by the Department of
Agriculture, Environment and Rural Affairs to grant a revised water
discharge consent for the Company's exploration site. In June, the
date for the hearing of the second JR will be set and it is
expected to take place in the second half of the year. Both
departments are robustly defending the proceedings and the
decisions made. Dalradian, as a notice party, will also be
submitting evidence in defence of the decision-making process. The
timing and process for review of the Planning Application is not
affected by the JR process and the application has continued to
move through review and consultation steps. The Company will
provide updates on any material developments regarding the JRs.
Supporting
Documents
The Q1 2018 year-end Financial
Statements (not including notes) can be found below. The full Q1
2018 Management Discussion and Analysis and Financial Statements
are available on www.dalradian.com and on www.sedar.com.
Condensed Consolidated
Statement of Financial Position
(Expressed in Thousands of Canadian dollars)
(Unaudited)
|
As at
Mar. 31, 2018
|
|
As at
Dec. 31, 2017 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
Cash
and cash equivalents |
$ |
126,929 |
|
|
$ |
137,963 |
|
Amounts receivable |
|
1,508 |
|
|
|
651 |
|
Prepaid expenses and other assets |
|
661 |
|
|
|
685 |
|
|
|
129,098 |
|
|
|
139,299 |
|
Non-Current assets: |
|
|
|
|
|
|
|
Restoration deposit |
|
1,130 |
|
|
|
1,058 |
|
Property, plant and equipment |
|
173,033 |
|
|
|
166,347 |
|
Exploration and evaluation assets |
|
5,209 |
|
|
|
4,601 |
|
|
|
179,372 |
|
|
|
172,006 |
|
|
$ |
308,470 |
|
|
$ |
311,305 |
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
5,086 |
|
|
$ |
7,141 |
|
Provision for reclamation |
|
176 |
|
|
|
356 |
|
|
|
5,262 |
|
|
|
7,497 |
|
|
|
|
|
|
|
|
|
Non-Current liabilities: |
|
|
|
|
|
|
|
Provision for reclamation |
|
942 |
|
|
|
695 |
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
Share
capital |
|
359,753 |
|
|
|
359,737 |
|
Warrants |
|
- |
|
|
|
48 |
|
Contributed surplus |
|
15,744 |
|
|
|
15,146 |
|
Accumulated deficit |
|
(73,231 |
) |
|
|
(71,818 |
) |
|
|
302,266 |
|
|
|
303,113 |
|
|
|
|
|
|
|
|
|
|
$ |
308,470 |
|
|
$ |
311,305 |
|
Condensed Consolidated
Statement of Loss and Comprehensive Loss
(Expressed in Thousands of Canadian dollars, except per share
amounts)
(Unaudited)
|
Three months
ended
Mar. 31, 2018
|
|
Three months
ended
Mar. 31, 2017
|
Operating expenses: |
|
|
|
|
|
|
|
Salaries and related benefits |
$ |
854 |
|
|
$ |
484 |
|
Professional fees and consulting |
|
128 |
|
|
|
229 |
|
Share-based payments |
|
493 |
|
|
|
245 |
|
Investor relations and travel |
|
340 |
|
|
|
242 |
|
Office, regulatory and general |
|
283 |
|
|
|
193 |
|
Interest and bank charges |
|
3 |
|
|
|
4 |
|
Depreciation |
|
1 |
|
|
|
1 |
|
Foreign exchange gain |
|
(234 |
) |
|
|
(54 |
) |
|
$ |
1,868 |
|
|
$ |
1,344 |
|
|
|
|
|
|
|
|
|
Interest income |
|
455 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
Loss
and comprehensive loss for the period |
$ |
(1,413 |
) |
|
$ |
(1,281 |
) |
|
|
|
|
|
|
|
|
Loss
per share - basic and diluted |
$ |
- |
|
|
$ |
(0.01 |
) |
Condensed Consolidated Statement of Shareholders'
Equity
(Expressed in Thousands of Canadian dollars)
(Unaudited)
|
Three months
ended
Mar. 31, 2018
|
|
Three months
ended
Mar. 31, 2017
|
Share capital: |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
359,737 |
|
|
$ |
195,975 |
|
Warrants exercised |
|
- |
|
|
|
9,932 |
|
Share-based payments exercised |
|
16 |
|
|
|
74 |
|
Balance, end of period |
$ |
359,753 |
|
|
$ |
205,981 |
|
|
|
|
|
|
|
|
|
Warrants: |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
48 |
|
|
$ |
10,746 |
|
Warrants exercised |
|
- |
|
|
|
(2,077 |
) |
Warrants expired |
|
(48 |
) |
|
|
(48 |
) |
Balance, end of period |
$ |
- |
|
|
$ |
8,621 |
|
|
|
|
|
|
|
|
|
Contributed surplus: |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
15,146 |
|
|
$ |
12,315 |
|
Increase from share-based payments |
|
566 |
|
|
|
298 |
|
Warrants expired |
|
48 |
|
|
|
48 |
|
Share-based payments exercised |
|
(16 |
) |
|
|
(74 |
) |
Balance, end of period |
$ |
15,744 |
|
|
$ |
12,587 |
|
|
|
|
|
|
|
|
|
Accumulated deficit: |
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
(71,818 |
) |
|
$ |
(64,114 |
) |
Loss
and comprehensive loss for the period |
|
(1,413 |
) |
|
|
(1,281 |
) |
Balance, end of period |
$ |
(73,231 |
) |
|
$ |
(65,395 |
) |
|
|
|
|
|
|
|
|
Total
shareholders' equity |
$ |
302,266 |
|
|
$ |
161,794 |
|
Condensed Consolidated Statement of Cash Flows
(Expressed in Thousands of Canadian dollars)
(Unaudited)
|
Three months
ended
Mar. 31, 2018
|
|
Three months
ended
Mar. 31, 2017
|
Cash
flows from (used in) operating activities: |
|
|
|
|
|
|
|
Loss
and comprehensive loss for the period |
$ |
(1,413 |
) |
|
$ |
(1,281 |
) |
Items
not affecting cash: |
|
|
|
|
|
|
|
Unrealized foreign exchange gain on cash |
|
(393 |
) |
|
|
(64 |
) |
Interest income |
|
(455 |
) |
|
|
(63 |
) |
Depreciation |
|
1 |
|
|
|
1 |
|
Share-based payments |
|
493 |
|
|
|
245 |
|
Unrealized foreign exchange gain on restoration deposit |
|
- |
|
|
|
(9 |
) |
Change
in non-cash operating working capital: |
|
|
|
|
|
|
|
Amounts receivable |
|
(843 |
) |
|
|
126 |
|
Prepaid expenses and other assets |
|
(17 |
) |
|
|
(7 |
) |
Accounts payable and accrued liabilities |
|
(698 |
) |
|
|
(623 |
) |
Cash
disbursements related to reclamation |
|
(6 |
) |
|
|
- |
|
Cash
flows used in operating activities |
$ |
(3,331 |
) |
|
$ |
(1,675 |
) |
Cash
flows from financing activities: |
|
|
|
|
|
|
|
Exercise of warrants |
$ |
- |
|
|
$ |
7,855 |
|
Cash
flows from financing activities |
$ |
- |
|
|
$ |
7,855 |
|
Cash
flows from (used) in investing activities: |
|
|
|
|
|
|
|
Expenditures on exploration and evaluation assets |
$ |
(168 |
) |
|
$ |
(78 |
) |
Additions to property, plant and equipment |
|
(8,369 |
) |
|
|
(5,501 |
) |
Interest received |
|
441 |
|
|
|
63 |
|
Cash
flows used in investing activities |
$ |
(8,096 |
) |
|
$ |
(5,516 |
) |
Net
change in cash and cash equivalents |
|
(11,427 |
) |
|
|
664 |
|
Cash
and cash equivalents, beginning of period |
|
137,963 |
|
|
|
35,719 |
|
Effect
of exchange rate fluctuations on cash held |
|
393 |
|
|
|
64 |
|
Cash
and cash equivalents, end of period |
$ |
126,929 |
|
|
$ |
36,447 |
|
|
|
|
|
|
|
|
|
About Dalradian
Dalradian 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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