Dalradian Resources has signed agreements with finance companies Orion Mine Finance II and Osisko Gold Royalties to secure C$78.25m ($62.38) through a private placement to fund development of Curraghinalt gold project in Northern Ireland.
Under the agreements, Orion and Osisko will make investments of C$50m ($39.86m) and C$28.25m ($22.52m) respectively.
Osisko also plans to exercise 6.25 million warrants, taking the total funding to around C$84.75m ($67.56m).
Proceeds of the private placement will be used to meet general working capital needs.
Dalradian Resources CEO Patrick Anderson said: “This is a strong vote of confidence in both the Curraghinalt gold project and in Northern Ireland as an investment destination by two highly respected mining finance groups.
“Today’s placement, together with all recent warrant exercises, will provide the company with additional equity funding in excess of C$110m ($87.89m). This means that the company is now well-funded to move Curraghinalt through permitting, while continuing to expand and improve the value of the project through further investment in exploration and engineering.”
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Once the private placement is closed, Orion will own 9.75% of Dalradian’s issued and outstanding common shares, while Osisko is expected to hold around 9.1%.
Expected by the end of next month, closure of the placement is dependent on submission of the application to obtain planning permission to build a mine at the project and receipt of all required regulatory approvals.