Landore Resources Limited Conclusion of Strategic Review and Plans for 2023 (5130M)
January 12 2023 - 2:00AM
UK Regulatory
TIDMLND
RNS Number : 5130M
Landore Resources Limited
12 January 2023
This announcement contains inside information
as defined in Article 7 of the Market Abuse Regulation No
596/2014
12 January 2023
Landore Resources Limited
Conclusion of Strategic Review and Plans for 2023
Landore Resources Limited (AIM: LND) ("Landore" or "the Company
") is pleased to provide an update on the review of the options
available to Landore in relation to its Canadian subsidiary /assets
(the "Strategic Review") which concluded on 31(st) December 2022
and Landore's operational plans for 2023.
The Strategic Review process generated significant interest in
the Company's Canadian subsidiary / assets and whilst positive
outcomes from the Strategic Review process have arisen, details of
which are set out below, as a result of challenging market
conditions the Board does not believe that it will be possible to
maximise the value of the Company's assets through a corporate
transaction at this time. Accordingly, the Board has determined
that it will be in shareholders' best interests for management to
continue to focus on developing the value within the Company's
existing assets in the near term.
Landore will continue its discussions with several parties
regarding Landore's Junior Lake Northern area, which contains known
lithium prospects. These discussions are progressing well; however,
there can be no guarantee that it will be possible to conclude a
transaction regarding these assets. Whilst the Strategic Review has
now been concluded, it should be noted that any future interest
expressed in Landore Canada and the Junior Lake property will
continue to be duly considered and assessed by the Board.
The Strategic Review process was the catalyst for concluding the
sale of the Company's interests in the Root Lake property for total
consideration of CAN$3 million in cash, as announced in October
2022. These funds, along with the Company's existing cash
resources, result in the Company being well funded as it enters
2023.
The Strategic Review has provided the Company with industry
feedback which indicated that a gold resource in the region of 2
million ounces would result in the Company's assets being of
interest to a number of large industry participants, and the Board
now considers that greater potential value for shareholders would
be achieved by seeking to grow Landore's gold resource ("Resource")
towards this level.
The Company's operational plans for 2023 will continue to focus
on the development of the BAM gold project ("BAM Project"), with an
initial target of increasing the Resource at the BAM Project to 2
million ounces, along with the completion of a Pre-feasibility
report. A detailed drilling programme for the BAM Project is being
prepared, with drilling expected to commence in Q2 2023. The scope
of the drilling programme will be subject to funding and further
details will be provided in due course. The Board is planning to
drill the Company's base metals projects later in 2023, subject to
funding.
Analysis of the drilling results from the recently completed
programme at the Felix-Lamaune Prospects will be completed shortly,
and the results are expected to be reported later this month.
In light of the Company's future plans, and the intention to
move into the pre-feasibility phase at the BAM Project, the Board
intends to strengthen Landore's management team in the near term,
whilst ensuring that the technical knowledge of the Company's
assets remains and the strong relationships with the First Nations
people in Ontario are maintained. Further updates will be provided
in due course.
Chief Executive Officer of Landore Resources, Bill Humphries,
said
"It is the Board's view that Landore is in a strong position to
advance the BAM gold project and the Company's base metals projects
this year. The Company starts 2023 in a sound financial position,
with a 1.5 million ounce NI43-101 compliant Gold Resource, two
NI43-101 compliant Nickel equivalent Resources, a farm-in agreement
with Storm Exploration Inc for the Miminiska Properties, ongoing
discussions regarding Landore's Junior Lake lithium prospects and
the planned strengthening of the management team, and the Board is
optimistic for the Company's prospects in 2023".
ENDS
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Cenkos Securities (Nominated Advisor and Broker)
Derrick Lee / Peter Lynch Tel: 0131 220 9100
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END
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