Minco shares soar on possible takeover by Dalradian Resources
Shares in Minco PLC (LON:MIO) were up almost 70% to 2.25 pence at 4:34 pm GMT on news that the mineral exploration firm was in talks with Canada’s Dalradian Resources (TSX:DNA) (LONDALR) over a potential takeover.
The deal would transfer control of Minco's 2% net smelter return royalty on the Curraghinalt gold project in Northern Ireland, one of the world’s top ten undeveloped gold deposits by grade, which Dalradian is currently developing.
Deal would transfer control of Minco's 2% net smelter return royalty on the Curraghinalt gold project in Northern Ireland, one of the world’s top ten undeveloped gold deposits by grade.
Minco would in turn demerge its Canada-based Buchans Resources Ltd subsidiary ahead of the deal and those shares in Buchans would be transferred to Minco shareholders in the same proportion as their current holdings, Minco said.
Buchans would make an application for a listing on a Canadian stock exchange "as soon as reasonably practicable".
Since Dalradian began working in in Northern Ireland in 2010, it has grown the total resources of the project more than seven-fold to 2.3 million inferred ounces of golden 2.1 million ounces of measured and indicated resources.
The firm says Northern Ireland has the seventh richest undeveloped seam of gold in the world, but political violence kept most investors away for about three decades.
Dalradian’s stock was up 3.1% in Toronto to 4 Canadian cents at 12:37pm ET, and while it was halted in London it closed down 3.14% Monday at 77 pence.