REG - Landore Resources Ld - Execution of Extinguishment Agreement

Landore ResourcesAnnouncement

24/10/2022 07:00

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RNS Number : 8426D  Landore Resources Limited  24 October 2022

This announcement contains inside information

 

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

 

Execution of Extinguishment Agreement

 

 

London, United Kingdom - 24 October 2022 - Landore Resources Limited (AIM:
LND) ("Landore Resources" or "the Company") is pleased to confirm that further
to the announcement on the 10(th) October 2022, the Company and ASX-listed
Green Technology Metals Ltd ("GT1") have now finalized and executed the
Extinguishment Agreement. Accordingly, GT1 has now concluded the purchase, and
will extinguish, 50% (1.5%) of the 3% net smelter royalty ("NSR") that Landore
holds over the Root Lake property (the "Root Lake Property").  In return for
entering into the Extinguishment Agreement, GT1 has agreed to pay Landore
CAN$2 million in cash.

 

The Extinguishment Agreement also provides for the acquisition by GT1 of the
remaining 1.5% NSR over Root Lake, which is currently held by Ardiden Limited
("Ardiden"), pursuant to the option agreement between Landore and Ardiden (the
"Option Agreement") which was notified by Landore on 10 February 2016.  Under
the terms of the Option Agreement, the Company's remaining 1.5% NSR over Root
Lake could be acquired from Landore in return for a cash payment of CAN$1
million.

 

Earlier today, GT1 announced that it was to acquire Ardiden's 20% interest in
the Root Lake Property (the "GT1 Acquisition"). Subject to completion of the
GT1 Acquisition, which is scheduled to complete on 28 October 2022, GT1 has
agreed to exercise the option to purchase the remaining 1.5% of the NSR in
return for a further cash payment to Landore of CAN$1 million.

 

Following completion of the transaction, Landore will receive a total of CAN$3
million in cash and will no longer have an interest in the Root Lake
Property.  The cash proceeds of CAN$3 million are payable no later than 31st
October 2022 and will be used to fund additional exploration activities at
Felix, Lamaune and BAM at the Junior Lake property and the Company's ongoing
working capital requirements.

 

 

- 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 6939

 Strand Hanson Limited (Financial Adviser)

 James Dance / James Spinney / Robert                      Tel: 020 7409 3494
 Collins

 

 

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