Irish court approves Dalradian takeover of Minco
An Irish court approved Tuesday Canada’s Dalradian Resources’ (TSX:DNA) (LONDALR) proposed takeover of Minco PLC (LON:MIO), which gives the Toronto-based firm control over a 2% net smelter return royalty on the Curraghinalt gold project in Northern Ireland.
The transaction means Minco is also demerging its wholly owned subsidiary Buchans Resources so that, on the completion of the Dalradian scheme, the only asset held by Minco will be the royalty. Minco shares are expected to be cancelled from admission on AIM effective at 7:00 am (UK time) on August 31.
“The acquisition of the royalty from Minco immediately increases the value of the Curraghinalt Gold Project by reducing the cost of any future gold production,” President and CEO Patrick F.N. Anderson said in a statement. “We also expect other improvements in the economics of the project will result from the programs we currently have underway.”
Dalradian is advancing applications to build a mine that initially will operate for just over 10 years at Curraghinalt, one of the world’s top ten undeveloped gold deposits by grade.
The mine is expected to produce 1.36 million ounces of gold and 380,000 ounces of silver, using an average overall gold recovery of 94.3% over the time frame.
The Toronto-based miner, which set foot on Northern Ireland in 2010, has the mineral rights to more than 80,000 hectares in the country. The nation is said to hold the seventh richest undeveloped seam of gold in the world. Political violence, however, kept most investors away for about three decades.