VANCOUVER (miningweekly.com) – Canadian gold explorer Dalradian Resources reported a C$19.96-million cash injection after holders of common share purchase warrants originally issued on October 7, 2015, were exercised.
The Toronto-headquartered company, with equity listings on both the TSX and Aim, said about 50.18-million of the October 2015 warrants were exercised, representing 99.7% of the issued warrants.
The paper was exercised between September 22 and October 10, at a strike price of C$1.04 each.
Dalradian's officers and directors participated in the transaction, exercising 371 250 warrants for C$386 100, and major shareholder Osisko Gold Royalties exercised 6.25-million warrants for C$6.5-million.
Dalradian Resources on Tuesday announced that it had raised C$84.75-million from two respected mining finance groups, which have signed up to participate in the advancement of the Curraghinalt gold project, in Northern Ireland.
Orion Mine Finance II has agreed to make an investment of C$50-million and Osisko Gold Royalties an investment of C$28.25-million into the company by way of a nonbrokered private placement. In addition, Osisko will exercise 6.25-million warrants at $1.04 each, bringing the total funding to C$84.75-million.
The placement, together with the recent warrant exercises, will provide the company with additional equity funding of more than C$110-million, which means that Dalradian is well funded to move the high-grade project through permitting.
Dalradian is working on an updated feasibility study for the Curraghinalt project to include the use of ore sorting technology, which separates high-grade gold from waste. A bulk sample of mineralised material was recently tested in Germany and delivered good results.