Dalradian reports Q3 2016 results
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TORONTO, ONTARIO -- (Marketwired) -- 11/10/16 -- Dalradian Resources Inc. (TSX: DNA)(AIM: DALR) ("Dalradian" or the "Company") announces results for the three and nine months ended September 30, 2016, including closing cash and cash equivalents of $43.1 million(1). The Company also reports that the work program at its Curraghinalt Gold Project in Northern Ireland has remained on track and on budget with permitting and ESIA activities continuing into Q4 2016. The process to submit the Planning Application has commenced and submission of the Application is expected in early Q1 2017.
Patrick F.N. Anderson, Dalradian's President and CEO, commented:
"As we move into Q4, we build on three solid quarters of progress and de-risking at our Curraghinalt project. So far this year we have: increased mineral resources through extensive infill drilling; staked additional ground to expand our total land package; and completed a successful test stoping and grade reconciliation program in support of mine planning. We look forward to the culmination of this work in Q4 with the publication of a feasibility study and environmental assessment, which will form the basis of our planning application.
With proceeds of almost $26 million from warrant exercises, we are well positioned to embark on further work to enhance the results of our soon to be released feasibility study. Details of this work plan will be released prior to year-end."
(1) All amounts are in Canadian dollars unless otherwise noted.
Operational highlights as of November 9, 2016
-- Completion of 558 days working underground, 244 blasts, approximately
960 metres of underground development, the completion of three test
stopes, all with zero non-compliance with regulations and zero lost-time
injuries;
-- Results from the testing of the first two long-hole test stopes
recovered 54% more gold that predicted in the resource model and
demonstrated that mechanized long-hole mining can be used as the primary
mining method;
-- The Feasibility Study (FS) is near finalization, with metallurgy/flow
sheet planning and the geotechnical program, test stoping and paste
backfill tests completed and mine development and production sequencing
nearing completion. The FS remains on track for release in Q4 2016;
-- Baseline studies for the ESIA are complete and impact studies are
expected to be finished during Q4. Consultations with stakeholders are
ongoing, with more than 500 individuals having been consulted to date
and 400 community members having toured our operations. The process to
submit the Planning Application has commenced and submission of the
Application is expected in early Q1 2017;
-- Jim Rutherford, a director of the Company with more than 25 years of
capital markets experience and in-depth knowledge of the mining
industry, was appointed as Non-Executive Chairman of the board of
directors and;
-- The Company was granted option agreements for precious metals and
prospecting licenses for base metals for two new licence areas (DG5 and
DG6) contiguous with Dalradian's existing licences in Northern Ireland.
The Company's licence areas now stretch over approximately 122,000
hectares of proven prospective ground. Dalradian's field crews began
regional prospecting and sampling in June as part of its 2016 regional
exploration program, which includes the new licence areas.
Corporate and financial highlights of Q3 2016 and subsequent period
-- During Q3, common share purchase warrants, originally issued on October
7, 2015, were exercised by several shareholders at a price of C$1.04,
resulting in proceeds to the Company of $24.8 million;
-- Cash and cash equivalents were $43.1 million at September 30, 2016
compared with $43.3 million as at
December 31, 2015;
-- Net loss of $4.8 million ($0.02 per share) in the nine months ended
September 30, 2016 compared with a net loss of $4.7 million ($0.03 per
share) in the comparable period of 2015. Net loss of $1.4 million ($0.01
per share) in the three months ended September 30, 2016 compared with a
net loss of $2.1 million ($0.01 per share) in the comparable period of
2015;
-- Spending on asset evaluation, which includes infill drilling,
underground development, field and desktop studies, permitting and other
activities associated with the Underground Program, in the nine months
ended September 30, 2016 was $19.6 million compared with $22.3 million
in the comparable period of 2015. Spending on asset evaluation for the
three months ended September 30, 2016 was $4.8 million compared with
$7.3 million during the comparable period in 2015;
-- Exploration expenditures (outside of the Curraghinalt gold deposit)
during the nine months ended September 30, 2016 were $0.8 million
compared $1.7 million for the comparable period of 2015. For the three
months ended September 30, 2016 exploration expenditures were $0.4
million compared with $1.3 million for the comparable period of 2015.
Regional exploration spending decreased in 2016 as the program included
soil and overburden sampling, panning and stream sediment testing on all
six licence areas compared to the 2015 program which included limited
drilling; and
-- As of November 9, 2016 Dalradian had 242,432,276 Common Shares issued
and outstanding.
Outlook
The budget for completion of the FS, Underground Program (including infill drilling), land acquisition, ESIA, submission of the planning application and corporate, general and administrative costs is approximately GBP 28 million ($56 million at the time the budget was finalized), for the budget period from October 1, 2015 to December 31, 2016. The work program remains on-budget, with $47 million spent to September 30, 2016. With the infill drill program completed and underground work nearing completion, project spending is expected to decrease in Q4 2016. Permitting activities, FS and ESIA work will continue during Q4 2016 leading to submission of the planning application in early Q1 2017. Dalradian's net working capital at September 30, 2016 was approximately $40 million against a remaining budget of approximately $9 million for the Underground Program, FS, ESIA, Planning Application and corporate, general and administrative costs for the year ended December 31, 2016.
Supporting Documents
The Q3 2016 Financial Statements (not including notes) can be found below. The full Q3 2016 Financial Statements and Management Discussion and Analysis are available on www.dalradian.com and also on www.sedar.com.
Dalradian Resources Inc.
(An exploration stage company)
Condensed Consolidated Balance Sheets
(Expressed in Canadian dollars)
(Unaudited)
As at As at
Sept. 30, 2016 Dec. 31, 2015
--------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 43,108,509 $ 43,322,899
Amounts receivable 200,134 856,244
Prepaid expenses and advance
payments 786,754 1,373,798
--------------------------------------
44,095,397 45,552,941
Non-Current assets:
Restoration deposit 1,063,230 1,268,930
Property, plant and equipment 13,961,336 12,096,928
Exploration and evaluation assets 102,870,245 82,356,346
--------------------------------------
$ 161,990,208 $ 141,275,145
--------------------------------------
--------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 4,116,345 $ 6,070,328
--------------------------------------
Non-Current liabilities:
Provision for decommissioning and
restoration 1,058,278 1,265,234
--------------------------------------
Shareholders' equity:
Share capital 194,839,561 162,680,450
Warrants 10,763,448 15,019,060
Contributed surplus 12,319,243 12,533,961
Accumulated deficit (61,106,667) (56,293,888)
--------------------------------------
156,815,585 133,939,583
--------------------------------------
$ 161,990,208 $ 141,275,145
--------------------------------------
--------------------------------------
Dalradian Resources Inc.
(An exploration stage company)
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian dollars)
(Unaudited)
Three Three Nine Nine
months months months months
ended ended ended ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2016 2015 2016 2015
--------------------------------------------------------
Operating expenses:
Salaries and
related benefits $ 579,902 $ 1,231,245 $ 1,679,710 $ 2,775,842
Professional fees
and consulting 235,137 328,930 930,559 553,288
Share-based
payments 91,441 363,759 371,153 968,932
Investor relations
and general
travel 310,807 307,511 717,307 874,823
Office, regulatory
and general 157,591 159,507 488,199 571,947
Amortization 1,152 24,243 3,454 101,250
Foreign exchange
loss (gain) 69,468 (321,333) 734,564 (1,017,547)
Interest and bank
charges 2,687 3,092 9,161 5,907
--------------------------------------------------------
$ 1,448,185 $ 2,096,954 $ 4,934,107 4,834,442
Interest income and
other 33,179 34,153 121,328 167,204
--------------------------------------------------------
Loss and
comprehensive loss
for the period $ (1,415,006) $ (2,062,801) $ (4,812,779) $ (4,667,238)
--------------------------------------------------------
--------------------------------------------------------
Loss per share -
basic and diluted $ (0.01) $ (0.01) $ (0.02) $ (0.03)
--------------------------------------------------------
--------------------------------------------------------
Dalradian Resources Inc.
(An exploration stage company)
Condensed Consolidated Statements of Shareholders' Equity
(Expressed in Canadian dollars)
(Unaudited)
Nine months Nine months
ended ended
Sept. 30, 2016 Sept. 30, 2015
--------------------------------------
Share capital:
Balance, beginning of period $ 162,680,450 $ 110,693,043
Common shares issued 121,500 8,838,934
Warrants exercised 30,729,039 11,395,255
Options exercised 1,031,072 413,823
RSUs redeemed 277,500 -
--------------------------------------
Balance, end of period $ 194,839,561 $ 131,341,055
--------------------------------------
--------------------------------------
Warrants:
Balance, beginning of period $ 15,019,060 $ 7,288,894
Warrants issued - 1,984,250
Warrants exercised (4,211,829) (1,864,955)
Warrants expired (43,783) (53,085)
--------------------------------------
Balance, end of period $ 10,763,448 $ 7,355,104
--------------------------------------
--------------------------------------
Contributed surplus:
Balance, beginning of period $ 12,533,961 $ 11,118,485
Increase from share-based payments 445,071 1,098,712
Warrants expired 43,783 53,085
Options exercised (426,072) (158,822)
RSUs redeemed (277,500) -
--------------------------------------
Balance, end of period $ 12,319,243 $ 12,111,460
--------------------------------------
--------------------------------------
Accumulated deficit:
Balance, beginning of period $ (56,293,888) $ (48,830,319)
Loss and comprehensive loss for the
period (4,812,779) (4,667,238)
--------------------------------------
Balance, end of period $ (61,106,667) $ (53,497,557)
--------------------------------------
--------------------------------------
Total shareholders' equity $ 156,815,585 $ 97,310,062
--------------------------------------
--------------------------------------
Dalradian Resources Inc.
(An exploration stage company)
Condensed Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
(Unaudited)
Nine months Nine months
ended ended
Sept. 30, 2016 Sept. 30, 2015
--------------------------------------
Cash flows from (used in) operating
activities:
Loss and comprehensive loss for the
period $ (4,812,779) $ (4,667,238)
Items not affecting cash:
Unrealized foreign exchange loss
(gain) 1,052,978 (1,053,494)
Interest income and other (121,328) (162,111)
Amortization 3,454 101,250
Share-based payments 371,153 968,932
Restoration deposit 205,700 (136,348)
Change in non-cash operating working
capital:
Amounts receivable 650,173 (603,148)
Prepaid expenses and advance
payments 32,233 (226,063)
Accounts payable and accrued
liabilities 18,389 624,387
--------------------------------------
Cash flows used in operating
activities $ (2,600,027) $ (5,153,833)
--------------------------------------
Cash flows from financing activities:
Net proceeds from common shares and
warrants issued $ - $ 10,823,184
Exercise of warrants 26,517,210 9,530,300
Exercise of options 605,000 255,000
--------------------------------------
Cash flows from financing activities $ 27,122,210 $ 20,608,484
--------------------------------------
Cash flows from (used) in investing
activities:
Expenditures on exploration and
evaluation assets $ (21,497,178) $ (17,890,514)
Additions to property, plant and
equipment (2,314,384) (4,201,842)
Interest received 127,967 174,803
--------------------------------------
Cash flows used in investing
activities $ (23,683,595) $ (21,917,553)
--------------------------------------
Net change in cash and cash
equivalents 838,588 (6,462,902)
Cash and cash equivalents, beginning
of period 43,322,899 29,776,872
Effect of exchange rate fluctuations
on cash held (1,052,978) 1,053,494
--------------------------------------
Cash and cash equivalents, end of
period $ 43,108,509 $ 24,367,464
--------------------------------------
--------------------------------------
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 completing 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 and social impact assessment and underground exploration (approximately 960 metres of development with associated test stoping).
In May 2016, Dalradian announced an updated mineral resource estimate for Curraghinalt, including a 109% increase in gold ounces contained in the Measured and Indicated categories compared with the 2014 resource. The current resource consists of 2.1 million ounces of contained gold in the Measured and Indicated categories (5.61 million tonnes at 11.61 g/t) and 2.3 million ounces of contained gold in the Inferred category (7.13 million tonnes at 10.06 g/t gold). For further information, see the NI 43-101 technical report entitled, "Technical Report for the Northern Ireland Gold Project, Northern Ireland", dated June 17, 2016 and prepared by Dr. Jean-Francois Couture, PGeo (APGO#0197) and Dr. Oy Leuangthong, PEng (PEO#90563867), both of SRK Consulting (Canada) Inc. and Stacy Freudigmann, PEng (APEGBC #33972) of JDS Energy & Mining Inc.
FORWARD-LOOKING STATEMENTS
This news release contains "forward looking information" which may include, but is not limited to, statements with respect to the 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, the realization of mineral resource 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 economics 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 statements 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 the continued political stability in Northern Ireland, that permits required for Dalradian's operations will be obtained on a timely basis in order to permit Dalradian to proceed on schedule with its planned exploration and development programs, that skilled personnel and contractors will be available as Dalradian's operations continue to grow, that the price of gold will be at levels that render 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 estimates and current mine plans, that the assumptions contained in the Company's Technical Report are accurate and complete, that the results of the Environmental and Social Impact Assessment and the Feasibility Study will be positive 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. 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 news 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.
Contacts: Marla Gale Vice President Communications +1 416 583 5622 [email protected] Grant Thornton UK LLP (Nominated Adviser) Philip Secrett / Richard Tonthat / Harrison Clarke +44 (0)20 7383 5100 Canaccord Genuity Limited (Broker) Henry Fitzgerald-O'Connor / Martin Davison +44 20 7523 8000
Source: Dalradian Resources Inc.
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