REG - Landore Resources Ld - Conclusion of Strategic Review and Plans for 2023

Landore ResourcesAnnouncement

12/01/2023 07:00

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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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