JOHANNESBURG (miningweekly.com) – The High Court of Ireland has approved the acquisition of Minco by Dalradian Resources, which gives the project development company control of the 2% net smelter royalty on its Curraghinalt gold deposit, in Northern Ireland.
The transaction entails TSX- and Aim-listed Dalradian buying Aim-listed Minco in a recommended share-for-share transaction.
Minco is also demerging its wholly owned subsidiary Buchans Resources to Minco shareholders, so that on the completion of the Dalradian scheme, the only asset held by Minco will be the royalty.
The transaction was announced on June 1 and will close on Wednesday.
Dalradian is advancing applications to build a mine that initially will operate for ten-and-a-half years at the Curraghinalt deposit. The mine is expected to produce 1.36-million ounces of gold and 380 000 oz silver, using an average overall gold recovery of 94.3% over the time frame.
A 2016 feasibility study calculated an after-tax net present value, at a 5% discount rate, of $301-million, and an internal rate of return of 24.4% at an assumed gold price of $1 250/oz.
The feasibility study is based on proven and probable reserves of 1.44-million ounces of gold and 660 000 oz of silver.