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Fort Capital acts as financial advisor to Minco

Transaction Details

Fort Capital Partners is pleased to announce that Minco plc (AIM:MIO) (“Minco”) has reached agreement with Dalradian Resources (TSX:DNA) (“Dalradian”) to sell its 2% net smelter return royalty (the “Royalty”) on the Curraghinalt gold deposit currently being developed by Dalradian. As consideration, Dalradian will issue a total of 15,490,666 Dalradian Shares worth C$20 million. The transaction represents a premium of 91% to Minco’s closing price on March 20th.

The transaction is being effected by means of a recommended share for share acquisition of the entire issued share capital of Minco. Concurrent with the offer, Minco will undertake a spin-off (“Demerger“) to Minco shareholders of its wholly owned subsidiary Buchans Resources Limited (“Buchans”), which holds all of Minco’s other remaining assets except the Royalty.

Commenting on the Offer and the Demerger, John Kearney, the Chairman and Chief Executive of Minco, said:

“The value of the Royalty disposal represents an attractive valuation for the Royalty and a significant premium over the recent market capitalization of Minco. The structure of the offer allows Minco shareholders to realize the value of the Royalty, with the opportunity to participate directly in the Curraghinalt Gold Project as Dalradian continues the exploration and development of the deposit, which in the view of the Minco Board, has not heretofore been reflected in Minco’s share price. In addition, by receiving the Buchans Shares pursuant to the Demerger, Minco Shareholders will also retain their interest in all of Minco’s existing assets, other than the Royalty.”

Fort Capital Partners acted as financial advisor to Buchans and Minco in the Royalty transaction.