TIDMLND
RNS Number : 0899Y
Landore Resources Limited
10 May 2021
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No 596/2014
LANDORE RESOURCES LIMITED
(AIM Ticker: LND.L)
GRANT OF OPTION
MIMINISKA LAKE AND KEEZHIK PROPERTY
Landore Resources Limited (AIM: LND) ("Landore Resources" or
"the Company") is pleased to confirm that the Company's 100% owned
subsidiary Landore Resources Canada Inc. has granted an option (the
"Option"), to Lithoquest Resources Inc. (TSX.V - LDI) (Lithoquest)
pursuant to which Lithoquest can elect to purchase Landore's 100%
interest in certain mining claims, specifically, the Miminiska Lake
and Keezhik Lake properties in the Thunder Bay Mining district,
Northern Ontario (together, the "Property").
Under the terms of the Option agreement, Lithoquest can acquire
a 100% interest in the Property by making staged payments to
Landore totalling CAN$1,375,000 in cash ("Cash Payment") and an
additional CAN$2,625,000 either in cash or by issuing Landore with
new common shares in Lithoquest ("Convertible Cash Payment").
Lithoquest has exclusive discretion to determine if each tranche of
the Convertible Cash Payments is settled in cash or in Lithoquest
shares. Landore has received CAN$25,000 following execution of the
Option agreement. The balance of the payments set out in the Option
agreement are due in accordance with the schedule below:
-- A Cash Payment of CAN$100,000 within ten business days of the
Agreement being accepted by the TSX Venture Exchange; the
"Effective Date".
-- A Cash Payment of CAN$250,000 and a Convertible Cash Payment
of CAN$400,000 within six months of the Effective Date;
-- A Cash Payment of CAN$250,000 and a Convertible Cash Payment
of CAN$500,000 within twelve months of the Effective Date;
-- A Cash Payment of CAN$250,000 and a Convertible Cash Payment
of CAN$750,000 within 18 months of the Effective Date; and
-- A Cash Payment of CAN$500,000 and a Convertible Cash Payment
of CAN$1,000,000 within 24 months of the Effective Date.
Cash consideration received by the Company pursuant to the
Option agreement will be applied towards its working capital
requirements.
In addition to the Cash Payment and the Convertible Cash
Payment, following exercise of the Option, Landore shall be
entitled to receive a 2% net smelter returns royalty ("NSR") from
the Property. Lithoquest retains the right to reduce the NSR to 1%
by paying Landore the sum of CAN$1,000,000 in cash.
The Property
The Miminiska Lake property, comprising of 52 patented mineral
claims and 278 mineral claim cells, covers an area of 5,494
hectares and is located approximately 130 kilometres to the north
of the Junior Lake property and 115 kilometres to the east of the
Pickle Lake mining camp. Landore completed drilling campaigns at
Miminiska Lake in 2003/4, with 47 drill holes for 9,349 metres,
with results indicating that the property had good potential for
expansion and upgrading to a mineral resource. An independent
report in 2009 established the presence of two exploration targets:
Miminiska Lake (232,000 tonnes at 5.62 g/t gold) and Frond Lake
(271,000 tonnes at 5.1 g/t gold).
The Keezhik Lake property, comprising 570 mineral claim cells
over 12,484 hectares, is located 20 kilometres north of Landore's
Miminiska Lake property and 150 kilometres southeast of Goldcorp's
Musselwhite Gold mine. In 2011 a field reconnaissance, mapping and
sampling campaign was carried out at Keezhik Lake. Field
investigation of geophysical anomalies, prospective geological
features, and historical gold showings revealed several areas of
interest on the property.
In the Company's financial statements, as at 30th June 2020, the
Property generated no revenues, had a book value of nil, and
Landore's accumulated expenditure on the Property was GBP1.68
million.
About Lithoquest Resources Inc.
Lithoquest Resources Inc. (TSX.V - LDI) is a Canadian mineral
exploration company focused on the discovery and development of
economic precious and base metal deposits on three district-scale
projects in the Fort Hope greenstone belt in northwest Ontario:
Miminiska, Keezhik and Attwood.
About Landore Resources
Landore continues to be focused on the BAM Gold Deposit and the
Company's Junior Lake Property in Ontario, Canada, at which the
presence of Bonanza grade gold was announced on 20 April 2021. The
2020-21 drilling programme at the BAM Gold Deposit (the "Drilling
Programme") is progressing satisfactorily and will resume as
planned in May 2021, once the spring thaw allows operations to
recommence. Completion of the Drilling Programme is expected in
June 2021 and drilling results will be reported once received and
collated.
As a result of the Company's good progress with the Drilling
Programme and its focus on advancing the BAM Gold Deposit towards
becoming a multi-million ounce open pit resource with significant
underground mining potential, the Board of Landore views the
Miminiska Lake and Keezhik Property as non-core to the Company's
activities and has determined that Lithoquest's established
position in the region makes it better placed to advance the
Property at this time. In addition to consideration payments,
Landore will retain an interest in the Property through a 2%
NSR.
ENDS
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Tel: 07734 681262
Officer
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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