National Bank Financial Updates Coverage Dalradian Resources (TSX:DNA) with Outperform Rating - Video Research Alert on InvestmentPitch.com

GlobeNewswire

Vancouver, BC, March 6, 2014 - National Bank Financial has updated coverage on Dalradian Resources (DNA.TO). Following the recent closing of a $13.9 million bought-deal equity financing, analyst Steve Parsons gives the company an outperform rating, increasing the 12-month price target from $1.10 to $1.20, a healthy premium of 46% to the $0.82 price on February 26th, the day his report was issued.

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InvestmentPitch.com has produced a "video research alert" about Dalradian based on this report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Dalradian" in the search box.

The 19.8 million unit financing, including the exercise in full of the over-allotment option, priced at $0.70 per unit, was placed by a syndicate led by Canaccord Genuity, including Clarus Securities, Beacon Securities, BMO Capital Markets, Cormark Securities, Dundee Securities, and National Bank Financial.

The company`s operations are focused on low-risk jurisdictions in Europe, with active programs in both Norway and Northern Ireland.

The principal project centres around the Curraghinalt high grade lode gold deposit in Northern Ireland, where the gold resource covers a fraction of known mineralization over a 12 kilometre gold trend.

Proceeds from the financing are to be used towards a 55 tonne underground bulk sample program, which analyst Steve Parsons believes is a key de-risking step for the project. The program will be designed to validate mining methods and associated dilution, to demonstrate vein continuity, and for detailed metallurigical testwork. The bulk sample program is expected to last 12 months and cost approximately $20 million

Analyst Steve Parsons stated, "DNA continues to compare favourably with peer group at 0.6x P/NAV (peers 0.7x) in the context of the potential for a low capex intensity development plan and favourable logistics owing to solid regional infrastructure and shallow depth of mineralization."

The company currently trades at $0.87, well below the $1.20 target price, and with 109.4 million shares outstanding, the company is capitalized at $95.2 million.

For more information, please visit the company`s website www.dalradian.com or contact Marla Gale, Vice President of Communications at 416-583-5622 or email investor@dalradian.com.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

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