Landore Resources raises C$3.3 million

Released : 03/03/2017 07:30

RNS Number : 4428Y
Landore Resources Limited
03 March 2017
 

 

 

LANDORE RESOURCES LIMITED

("Landore Resources" or "the Company")

(AIM Ticker: LND.L)

 
 

 

Landore Resources raises C$3.3 million

 

 

London, United Kingdom - March 3 2017 - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") is pleased to announce it has raised gross proceeds of approximately C$3.3 million (£2 million) through a subscription  of 74,075,000 new ordinary shares of no par value in the Company ("New Ordinary Shares") at a price of 2.7 pence per New Ordinary Share (the "Issue Price") (the "Subscription").

 

The Issue Price represents a discount of approximately 7.5 per cent. to the closing middle market price of 2.92 pence per ordinary share on 2 March 2017, being the last trading day prior to this announcement and the New Ordinary Shares represent approximately 9.5 per cent. of the enlarged issued share capital (as enlarged by the New Ordinary Shares).

 

The net proceeds of the Subscription will, albeit on a more focused basis, be used by the Company to finance drilling and exploration at the BAM East Gold Deposit and working capital, as outlined in the announcement made by the Company on 17 February 2017.

 

As announced on 17 February 2017, the Company had intended to raise between £3 million to £4.5 million. However, in consultation with existing and potential shareholders it was agreed that a smaller fundraise at the current time maximises shareholder value.

 

Changes in Directors' disclosable interests pursuant to the Subscription are as set out below.

Director

New Ordinary Shares subscribed

Shareholding immediately following Admission

Percentage of enlarged issued share capital

William Humphries

4,580,000

68,894,119

8.8%

Richard Prickett

1,000,000

12,144,876

1.6%

Helen Green

740,000

2,357,583

0.3%

 

Commenting on today's announcement, Bill Humphries, Chief Executive of Landore Resources, said:

 

"The Directors and Management are delighted with the strong support for this fundraise by both existing and new Investors.

 

Drilling is scheduled to commence in early April on the BAM East Gold deposit aimed at upgrading and expanding the newly defined resource with further exploration along the highly prospective Junior Lake Shear. Shareholders can look forward to regular progress reports"

 

Further details on the Subscription

The Subscription is conditional on admission of the New Ordinary Shares to trading on AIM ("Admission"). The New Ordinary Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares of no par value ("Ordinary Shares"). Application will be made to the London Stock Exchange for Admission. It is expected that Admission of the New Ordinary Shares will become effective and that dealings in such New Ordinary Shares will commence at 8.00 a.m. on 13 March 2017. Following Admission of the New Ordinary Shares the Company's issued share capital will consist of 781,563,001 Ordinary Shares with voting rights. Landore Resources does not hold any Ordinary Shares in treasury.

 

The aforementioned figure of 781,563,001 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Landore Resources under the Financial Service Authority's Disclosure Guidance and Transparency Rules.

 

Related Party Transactions

As Directors of the Company, the participation of William Humphries, Richard Prickett and Helen Green in the Subscription (the "Director Subscription") is deemed to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.

 

In addition, Arconas International Limited and Taheh International Holdings, which currently have interests in the Company of 13.9 per cent. and 13.4 per cent respectively, have subscribed for 5,555,000 New Ordinary Shares and 9,630,000 New Ordinary Shares respectively pursuant to the Subscription (the "Shareholder Subscription"), which, as Substantial Shareholders in the Company, are also deemed to be related party transactions pursuant to Rule 13 of the AIM Rules for Companies.

 

Charles Wilkinson, Independent Director, having consulted with the Company's Nominated Adviser, Strand Hanson Limited, considers that the terms of the Director Subscription and the Shareholder Subscription are fair and reasonable insofar as the Company's shareholders are concerned.

 

- ENDS -

 

About Landore Resources

Landore Resources is an exploration company that seeks to grow shareholder value through the acquisition, exploration and development of precious and base metal projects in eastern Canada. The Company is primarily focused on the development of the Junior Lake Project. Landore Resources has mineral rights to 5 properties in eastern Canada. The Company is headquartered in Guernsey, with an exploration office located in Thunder Bay, Ontario, Canada.

 

For more information, please contact:

 

Bill Humphries, Chief Executive Officer          Tel: 07734 681262

Richard Prickett, Finance Director                   Tel: 07775 651421

Landore Resources Limited                              www.landore.com

 

James Spinney / Jack Botros                           Tel: 020 7409 3494

Strand Hanson Limited

Nominated Advisor and Broker

 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IOEUGUAGWUPMUMW