Gold mine business Dalradian to delist after its £304m sale
A Canadian exploration business that plans to build a gold mine in Co Tyrone will become a private company following a CAN $537m (£304m) disposal by most of its shareholders.
Dalradian Resources, the parent company of Dalradian Gold Ltd (DGL), will delist from the stock exchange in Toronto and the AIM in London if the deal goes ahead.
The transaction involves an affiliate of Orion Mine Finance buying just under 80% of the shares in Dalradian Gold.
Orion invested $50m (£28m) in Dalradian Resources Inc in November last year.
Remaining shareholders including Osisko Gold Royalties, led by Dalradian board member Sean Roosen, will keep a 20.4% shareholding.
Dalradian Gold said it would continue its activities during and after the transition "in line with our plans and market conditions".
The company lodged a 10,000-page planning application for a gold mine at Curraghinalt near Greencastle in November.
It said the project would support 350 jobs and generate £750m over 25 years. But the planning process is the subject two judicial reviews by opposing groups.
Mr Roosen, the chairman and CEO of Osisko, which invested $28m (£16m) in Dalradian in November, was a founding board member of Dalradian.
Osisko said: "The Osisko management team has deep experience in developing and operating mines, which will be of great value to the DGL operations team over the coming years."
Dalradian shareholders will consider the deal in August, with the transaction expected to complete in September or October.
Oskar Lewnowski, chief investment officer of Orion, said: "We are very pleased to expand our ownership in one of the world's best undeveloped gold deposits.
"Curraghinalt gets more exciting as additional work is completed, the recent positive resource update being just the latest example.
"The team has done an outstanding job of growing the deposit and advancing it through the feasibility stage."
Mr Roosen added: "We look forward to working with Dalradian management, Orion and Dalradian's stakeholders to deliver on these opportunities."
Patrick FN Anderson, chief executive of Dalradian Gold, said: "Orion and Osisko are showing great confidence in Northern Ireland, our high grade Curraghinalt project and our west Tyrone workforce.
"Their goals as strategic investors are completely aligned with ours - to secure planning permission for an underground gold mine and continue advancing the project in a way that benefits all our stakeholders.
"We will continue to work closely with community members, all levels of government, employees, contractors and local suppliers toward building one of the world's top gold mines."