REG - Landore Resources Ld - Final Results and Notice of AGM
22/06/2022 07:00
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RNS Number : 7008P Landore Resources Limited 22 June 2022
22 June 2022
Landore Resources Limited
("Landore Resources" or the "Company")
Final Results and Notice of AGM
The Board of Landore Resources (AIM: LND) is pleased to announce its audited
results for the year to 31 December 2021.
The Company's Annual General Meeting ("AGM") is to be held at La Tonnelle
House, Les Banques, St Sampson, Guernsey, GY1 3HS on 22 July 2022 at 12.30 pm.
The full text of the Annual Report, the Notice of AGM and the associated
imagery will be available from the Company's website shortly, www.landore.com
(http://www.landore.com)
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
Chief Executive Officer's statement
I am pleased to present the 2021 Annual Report for Landore Resources Limited
("Landore Resources" or "the Group").
2021 saw further disruption around the globe due to the spread of a novel
strain of coronavirus ("COVID-19"). The Group, however, continued to safely
maintain its Canadian operations to achieve significant exploration
milestones.
During 2021 all of Landore Resources' exploration efforts were focussed on the
Junior Lake property; drilling to further infill, extend and deepen the BAM
Gold resource to 1,496,000 ounces of gold (reported by the Company on 8
February 2022) - a considerable increase of 481,000 ounces (47%) from the 2019
Mineral Resources Estimate ("MRE") (reported by the Company on 7 January
2020).
Financial Results
In the year ended 31 December 2021, the Group incurred a loss, after tax, of
£3,911,717 (2020: £2,553,556).
Operating expenses were in line with our budgets and expectations. Financing
was secured in February 2021, at which time the Group raised gross proceeds of
£3.5 million by the issuance of shares at an issue price of 30p per share.
In addition, a number of existing warrants over Ordinary Shares in the Group
have been exercised pre and post 31 December 2021 and have provided further
funding to the Group to continue its operations.
The Group has no debt and believes it is capable of continuing to raise
further equity as needed to carry out its development plans. Shareholders have
been very supportive of the Group's financing needs and the Directors are
confident of raising further funds as required.
The Junior Lake Property
The Junior Lake property, 100 per cent. owned by Landore, is located in the
province of Ontario, Canada, approximately 235 kilometres north-northeast of
Thunder Bay and is host to the BAM Gold Deposit, the B4-7
Nickel-Copper-Cobalt-PGEs Deposit, the VW Nickel-Copper Deposit and numerous
other highly prospective mineral occurrences.
The Junior Lake property together with the adjacent 90.2% owned Lamaune Lake
property extends for 31 kilometres across highly prospective Archean
greenstone belt and covers an area of 33,029 hectares.
BAM Gold Deposit: In May 2021 Landore re-commenced drilling aimed at further
infilling and extending the defined resource and to test the depth potential
of the previously delineated mineralization.
Up to December 2021, a total of 353 NQ and HQ diamond drill holes for
approximately 69,857 metres have been completed on the BAM Gold Resource
maintaining the highly successful discovery rate of 21 ounces of gold for
every metre drilled.
The BAM Gold Deposit now extends 4,300 metres from grid line 200W to 4100E and
remains open down dip and along strike to the east and the west.
The continued rapid growth of the BAM Gold Deposit, together with the possible
future development of the other known gold prospects along this highly
prospective 31 kilometre long Archean greenstone belt, bodes well for the high
potential of the Junior Lake Property hosting a multi-million ounce gold
deposit.
Battery Metals Deposits: The burgeoning interest for electric cars has
significantly increased demand for battery metals throughout the world, such
as nickel, cobalt and lithium. The Junior Lake Property is host to two defined
battery metals deposits, the B4-7 and VW, which between them contain 55,581
tonnes of Nickel Equivalent Metals, both deposits have growth potential. In
addition there are numerous polymetallic prospects ranged along the southern
margin of the major zoned gabbro complex ("the "Grassy Pond Sill").
Landore is currently reviewing its Battery Metals Deposits and occurrences
with the aim of maximising value in this promising uplift in demand in this
sector.
Further details are set out in the Operations Report.
Planned works for 2022: Drilling will re-commence in July 2022 to further
delineate and test the depth potential of the BAM Gold Deposit together with
drilling the highly prospective Felix area along strike and to the west for
both Gold and battery metals. In addition, drilling will be carried out on the
Lamaune Gold deposit to advance it to defined resource status.
Landore also plans to commence pre-feasibility studies in H2 2022 on the BAM
Gold Deposit, now that the Indicated portion of the resource has passed the
one million ounce target.
Social and Environmental Responsibility: The Group continues to enjoy solid
working relationships with the local First Nations on whose traditional lands
our Junior Lake Property is located. Landore believes that a successful
project is best achieved through maintaining close working relationships with
First Nations and other local communities.
On behalf of my fellow directors I wish to thank our shareholders for their
continued support together with Landore's Management and Exploration team for
their dedication and perseverance in advancing our highly prospective Junior
Lake Property.
William Humphries
Chief Executive Officer
21 June 2022
Operations report
INTRODUCTION
Landore Resources Limited, through its 100 per cent. owned subsidiary Landore
Resources Canada Inc. ("Landore"), is actively engaged in mineral exploration
in Eastern Canada. Landore owns or has the mineral rights to three properties
in Eastern Canada including its highly prospective Junior Lake Property.
During 2021 Landore Resources' exploration efforts were focussed on the Junior
Lake property. Drilling identified additional shallow mineralization along
strike east and west of the main BAM Gold Deposit mineralization, infilled for
depth extension of high grade intersections including the westerly down plunge
extensions of the main BAM Gold Deposit unit mineralization as well as shallow
hanging wall mineralization within the Grassy Pond Sill, and also infilled to
target zones with good continuity for resource definition. Drilling also
converted Inferred Mineral Resources of the existing resource to the Indicated
Mineral Resource category for inclusion in the upgraded Mineral Resource
Estimate reported by Landore on 8 February 2022.
Full details of the Group's projects, including maps and Canadian National
Instrument 43-101 (NI 43-101) resource reports can be viewed on the Group's
website, www.landore.com (http://www.landore.com) .
JUNIOR LAKE PROPERTY
The Junior Lake property, 100 per cent. owned by Landore, is located in the
province of Ontario, Canada, approximately 235 kilometres north-northeast of
Thunder Bay and is host to the BAM Gold Deposit, the B4-7
Nickel-Copper-Cobalt-PGEs Deposit and the adjacent Alpha PGEs zone. Junior
Lake also contains the VW Nickel Deposit and numerous other highly prospective
mineral occurrences.
The Junior Lake property is comprised of the Junior Lake claim group and the
immediately adjacent claim group of Lamaune Iron Inc. ("Lamaune Iron"). In
October 2017, Landore acquired a 90.2% ownership of Lamaune Iron, which became
a subsidiary of Landore.
Landore's Junior Lake property including the Lamaune Iron claim group now
consists of 1,318 (2020: 1,158) staked mineral claims and six mining leases,
all together totalling approximately 33,029 ha (2020: 30,507). The property
extends for 31 kilometres across highly prospective Archean greenstone belt.
BAM GOLD DEPOSIT:
The BAM Gold Deposit (formerly BAM East Gold Deposit) is located approximately
2 kilometres to the east of the B4-7 Deposit and 1 kilometre north of the VW
Deposit and is situated midway along an east-southeast to west-northwest
trending MaxMin geophysical anomaly (MM-7).
The latest BAM Gold resource estimate and report, completed by Cube Consulting
Pty Ltd ("Cube") of Perth, Western Australia and reported by Landore on 8
February 2022, increased the in-situ resource to:
49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000 ounces of gold
including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated
Category and 18,266,000t at 0.8g/t for 467,000 ounces of gold in the Inferred
Category (compliant with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (NI 43-101).
This upgraded Mineral Resource Estimate (MRE) modelling has increased the
in-situ resource by 481,000 ounces of gold (47%) compared with the 2019 MRE of
1,015,000 ounces of gold (reported by the Group on 7 January 2020).
Table 0-1 BAM Mineral Resource Estimate Block Model, January 2022 versus 2019
BAM Block Model 2022 BAM Block Model 2019
Res Cat Au g/t cut off Tonnes (kT) Grade (g/t Au) Contained Metal (kOz Au) Res Cat AU Ok Fin cut off Tonnes (kT) Grade (g/t) Contained Metal (kOz Au)
IND >0.0 33,201 1.0 1,045 IND >0.0 25,537 0.94 772
>0.3 30,965 1.0 1,029 >0.3 21,930 1.06 747
INF >0.0 21,254 0.7 488 INF >0.0 10,757 0.81 280
>0.3 18,266 0.8 467 >0.3 9,153 0.91 268
TOTAL >0.0 54,455 0.9 1,533 TOTAL >0.0 36,293 0.9 1,052
>0.3 49,231 1.0 1,496 >0.3 31,083 1.02 1,015
· In-situ Model estimate report:
o Grades have been reported above 0g/t Au and above 0.3g/t Au;
o These figures are not constrained by open pit optimisations; and do not
take into account metallurgical factors or other economic considerations.
· With the addition of the 2020-2021 drilling results and changes
to the gold mineralisation interpretation and domaining, the updated modelling
has resulted in the increase in Indicated and Inferred Resource of 47%
(in-situ contained metal) above a cut-off of 0.3g/t Au compared with the MRE
reported in 2019.
· Open pit optimisations, mine design and scheduling work, along
with economical analysis are currently being conducted by Cube Consulting.
The BAM Gold Deposit was discovered in December 2015 while drilling to test
the MM-7 geophysical target. Mineralization consisted of near-surface low
grade gold with periodic intervals of higher grade gold. Subsequent drilling
has grown the resource considerably, now extending 4,300 metres from grid line
200W to 4100E and remains open down dip and along strike to the east and the
west. In addition, soil sampling has identified widespread gold mineralization
along strike to the west for a further 7 kilometres.
The BAM Gold Deposit is interpreted as an Archean-aged mesothermal gold
deposit. Findings from drilling to-date on the BAM Gold Deposit have
revealed a lithological sequence consisting of leucogabbro and gabbro of the
Grassy Pond Sill to the south, metasedimentary rocks of the BAM sequence in
the central portion, to mafic volcanics to the north. All lithological units
have been subjected to variable shearing and deformation, markedly the
metasedimentary unit.
The deposit consists of gold mineralization that is hosted by sheared and
altered rocks of the Grassy Pond Sill and the BAM Sequence. The gold
mineralization is commonly observed in drill core to exist as visible gold
that is hosted by very thin, foliation-parallel quartz-rich veinlets, hosted
by highly fissile ultramafic sediments of the BAM sequence, or by foliated
rocks of the Grassy Pond Sill.
The BAM Gold Deposit has the potential to be initially developed as a low
cost, bulk tonnage, open pit operation.
2020-2021 Drill Campaign: In May 2021 Landore re-commenced drilling aimed at
further infilling and extending the defined resource and to test the depth
potential of the previously delineated mineralization.
The 2020/2021 drill campaign, conducted mid October 2020 to mid November 2021,
consisted of 24,171 metres for 102 HQ diamond drill holes (0420-725 to
0421-826). Drilling successfully intersected gold mineralization of similar
widths and grade to the existing BAM Gold Deposit with numerous instances of
visible gold ("VG"). Intersections included bonanza grade gold reporting 432.0
grams/tonne (g/t) gold over 0.32 metres in drill hole 0421-785 on cut grid
line 2850E below the currently defined east pit of the BAM Gold Deposit. Other
encouraging results included 53.37 metres at 1.35 g/t gold including 13.14
metres at 2.99 g/t gold in drill hole 0421-789 on line 2700E.
Results received in the 2020/2021 drilling campaign included:
Easting Northing Drill-hole From Interval* Au
No Metres Metres g/t
600E 350N 0421-822 144.49 0.97 7.47
and 150.56 1.02 14.40
and 328.39 2.13 1.49
750E 330N 0421-826 255.60 1.00 2.76
and 274.30 0.86 9.81
800E 300N 0421-820 148.08 0.83 19.75
800E 350N 0421-813 220.80 20.55 1.10
including 227.75 1.15 7.76
and 251.62 1.00 3.30
850E 340N 0421-823 231.72 9.25 4.04
including 237.97 1.01 31.50
900E 285N 0421-819 273.68 1.5 3.52
900E 335N 0421-814 222.12 17.45 4.13
including 232.74 5.98 9.80
and 236.80 1.02 47.20
950E 350N 0421-815 160.52 1.76 4.25
and 170.77 7.35 0.84
1000E 290N 0421-816 238.92 1.92 1.78
and 284.04 2.78 4.24
2550E 60S 0421-811 138.80 1.33 1.92
and 175.63 3.96 2.87
including 178.60 0.99 9.33
and 200.51 2.66 0.96
and 233.95 8.27 0.86
and 280.50 1.06 8.80
2600E 100S 0421-810 180.26 6.05 0.80
and 195.19 8.67 1.02
2650E 100S 0421-790 132.17 2.09 1.06
and 152.79 4.99 0.62
and 168.91 6.05 0.53
and 181.61 3.35 1.98
and 224.45 3.55 1.04
2700E 150S 0421-809 154.30 1.00 11.35
and 168.30 15.00 2.48
including 171.30 4.00 7.36
including 174.30 1.00 22.60
and 195.55 3.00 4.07
including 195.55 1.00 10.75
and 252.11 1.09 3.07
2700E 100S 0421-789 108.89 53.37 1.35
including 116.60 13.14 2.99
and 133.74 0.51 9.70
and 221.73 4.80 1.58
2750E 100S 0421-808 103.65 14.05 0.61
and 193.73 6.17 1.45
2750E 50S 0421-788 79.00 2.00 1.39
and 87.00 2.53 1.10
and 94.14 6.01 0.67
and 108.00 3.55 0.80
2800E 125S 0421-795 112.70 7.98 0.91
and 190.86 11.62 0.55
2800E 75S 0421-786 72.09 8.05 1.92
including 73.14 2.00 4.64
and 163.72 7.17 0.92
2800E 25S 0421-787 44.00 10.00 0.63
and 71.05 4.17 1.32
2825E 110S 0421-796 84.06 18.47 0.87
including 89.28 10.16 1.14
2850E 150S 0421-794 191.80 13.80 0.76
including 197.38 3.65 1.83
and 209.33 0.49 3.73
2850E 100S 0421-793 72.60 39.99 0.58
including 83.77 1.01 5.57
and 144.76 15.09 1.75
including 156.59 0.61 29.40
2875E 140S 0421-797 88.00 16.08 0.70
and 179.36 10.08 1.28
including 183.72 0.87 8.20
3100E 100S 0421-806 53.10 2.02 2.52
and 105.00 0.65 2.53
3300E 200S 0421-805 79.95 25.55 0.41
including 104.50 1.00 1.75
and 161.00 1.03 1.95
3300E 150S 0421-804 85.20 1.00 2.56
3400E 305S 0421-802 190.80 5.15 0.43
3400E 205S 0421-803 15.91 1.00 1.01
3500E 375S 0421-801 217.80 1.02 1.43
and 238.15 2.05 1.46
and 257.08 3.71 0.58
3600E 410S 0421-800 269.41 0.83 3.20
3685E 300S 0421-798 75.83 7.09 1.11
and 97.30 2.00 1.02
* The above drill holes were drilled north at 45-52 degrees into a
lithological package dipping approximately 85-75 degrees to the south. The
actual true thickness of mineralization is estimated to represent between
70-80% of the intervals shown in the above table.
The 2020/2021 drilling campaign successfully delineated further gold
mineralization along strike from the BAM Gold Deposit and at depth. Drilling
below the BAM East defined pit has consistently intersected the deposit's
typical lithology and mineralization including frequent sighting of VG. The
BAM Gold Deposit remains open to the east and west and down dip.
The BAM Gold Deposit is located along a highly prospective Archean greenstone
belt which traverses the Junior Lake Property from east to west for
approximately 31 kilometres and has great potential for further significant
gold mineralization. This favourable greenstone belt ranges from 0.5 to 1.5
kilometres wide and hosts multiple known gold occurrences including the
Lamaune Gold Prospect. Previous exploration works including regional soil/till
sampling have identified numerous gold anomalies and trends which have
generated numerous new drill targets with the potential of being advanced into
additional resources.
It is Landore's opinion that the Junior Lake property has excellent potential
to host a multi-million ounce gold deposit. Works planned for 2022 are
described on page 4.
JUNIOR LAKE BATTERY METALS
The burgeoning demand for Battery Metals is seeing the value of Landore's B4-7
and VW Deposits contained metals increase substantially. The Junior Lake
Ni-Cu-Co-PGE deposits and prospects are located along the Grassy Pond Sill,
which is situated within a shear zone along the highly prospective Archean
greenstone belt traversing the Junior Lake Property from east to west for
approximately 31 kilometres. This shear zone also hosts the BAM Gold Deposit
along its northern margin.
B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT
No material work has been completed on the B4-7 since the discovery of the BAM
Gold Deposit in December 2015 as the Company has focussed on the rapid
progression of the BAM gold project.
The B4-7 resource estimate and report, completed by RPA Inc. (RPA) independent
engineers of Toronto, Canada in January 2018, is compliant with the
requirements of NI 43-101. The resource, so far delineated over 900 metres of
strike and a depth of 550 metres, remains open down plunge at depth and along
strike to the west.
Table 1-2 Mineral Resources for the B4-7 Nickel-Copper-Cobalt-PGE
Deposit and Alpha Zone - 1 DECEMBER 2017
Landore Resources Canada Inc. - Junior Lake Project
Deposit Tonnes Ni (%) Cu (%) Co (%) Pt (g/t) Pd (g/t) Au (g/t) NiEq (%)
Open Pit
Indicated Alpha 132,000 0.23 0.09 0.02 0.18 0.99 0.01 0.63
B4-7 1,640,000 0.62 0.41 0.05 0.14 0.55 0.03 1.20
Inferred - - - - - - - -
Underground
Indicated B4-7 1,520,000 0.65 0.45 0.06 0.12 0.48 0.03 1.25
Inferred B4-7 568,000 0.61 0.52 0.05 0.08 0.50 0.03 1.26
Total
Indicated 3,292,000 0.62 0.42 0.05 0.13 0.53 0.03 1.20
Inferred 568,000 0.61 0.52 0.05 0.08 0.5 0.03 1.26
Notes:
1. CIM (2014) definitions were followed for Mineral Resource
estimation and classification.
2. Mineral Resources are estimated using average long-term metal
prices (US$) of $8.00/lb nickel, $3.50/lb copper, $19.00/lb cobalt, $1,400/oz
platinum, $1,000/oz palladium, and $1,400/oz gold and an exchange rate
(C$/US$) of 1.25, and the NSR factors stated in the body of this report.
3. Open Pit Mineral Resources are reported within a resource pit
shell at an NSR cut-off value of $22/t. Underground Mineral Resources are
reported at an NSR cut-off value of $62/t.
4. Tonnage figures are rounded to three significant figures.
Totals may not add correctly due to rounding.
5. The Mineral Resource estimate uses drill hole data available
as of 16 December 2015.
6. The Mineral Resource estimate for the B4-7 Deposit is
reported using densities calculated from estimated nickel + cobalt grades.
The Mineral Resource estimate for the Alpha Zone is reported using densities
calculated from estimated nickel grades.
The report also identified a new Exploration Target located immediately west
of the B4-7 Deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide
mineralization of similar grade range to that which has been outlined to-date
(potential 18,000 to 24,000 tonnes of contained metal).
There is significant value in the B4-7 Deposit in its credit commodities, in
particular cobalt and palladium. The B4-7 2018 resource upgrade reported a
significant cobalt content credit of +4.6 million pounds for the deposit to
date together with +66,000 ounces of Palladium. However, the adjacent Alpha
Zone, which has only partially been included in the B4-7 resource, is
palladium/platinum rich with drilling reporting intersections of 1.5 metres at
10.15g/t Pd in drill hole 0415-507 and 20.15 metres at 1.54 g/t Pd. in
drill-hole 0414-503 including 0.72 metres at 12.85 g/t Pd.
VW NICKEL-COPPER-COBALT DEPOSIT
In the same January 2018 report, RPA determined the VW Deposit to contain
1,084,000 tonnes at 0.71% NiEq in the Indicated category and 180,000 tonnes at
0.68% NiEq in the Inferred category for a total of 8,920 tonnes of contained
metal.
Infrastructure: The city of Thunder Bay is located on the northern shore of
Lake Superior and is the main supply hub for the mining centres of northern
Ontario including Red Lake, Pickle Lake, and the Musselwhite gold mine. It has
extensive port facilities and an airport providing daily flights to major
provincial cities, as well as a rail line that provides access to both eastern
and western North American markets.
Access to Junior Lake from Thunder Bay is via a sealed highway for 235
kilometres to the town of Armstrong and then via a well maintained forest
products unsealed road for 105 kilometres that runs to the property.
The Canadian National Railway runs parallel to the Junior Lake property 13
kilometres to the south providing direct transport access to both the nickel
smelting centre of Sudbury and the port facilities at Thunder Bay. In
addition, Junior Lake has abundant water resources nearby.
Environmental Baseline Studies: Golder Associates of Sudbury, Ontario, have
continued with the Environmental Baseline Studies programme initiated on the
mining leases containing the BAM, B4-7 and VW Deposits in the winter of 2007.
Water surface monitoring of lakes and drainage tributaries within the vicinity
of the deposits have continued since 2011. The area of influence has recently
been expanded to include lakes and drainage further out from the leases. The
environmental and baseline studies are all pre-requisite for permitting
requirements for the development of the BAM, B4-7 and VW Deposits.
Mining Leases: A pre-requisite for the development of the BAM, B4-7 and VW
Deposits is to secure tenure over an area of land sufficiently large to
provide for development, mining, processing, infrastructure and buffer zones
around the mining areas and for future expansion. Landore has been granted
three mining leases ("Mining Leases"), which include mining and surface
rights, over an area encompassing the BAM, B4-7 and VW Deposits. The Mining
Leases cover 23 existing exploration claims for a total area of 3,676 hectares
and have been granted for 21 years renewable for further terms of 21 years.
Additionally, in late 2019 Ontario's Ministry of Northern Development, Mines,
Natural Resources and Forestry granted the Company Mining Leases 109856 and
109857 encompassing all of Lamaune Iron's exploration claims over an area
totalling approximately 4,133 hectares.
The combined Landore and Lamaune Mining Leases cover a total of approximately
7,862 hectares and extend for 22 kilometres, encompassing all of Landore's
established mineral deposits and prospects. These include: the BAM Gold
Deposit; B4-7 Nickel-Copper-Cobalt-PGEs Deposit; VW Nickel-Copper Deposit (all
NI43-101 compliant); the Lamaune Gold Exploration Target; and the Lamaune Iron
Deposit.
Within the Mining Leases, Landore has the right, subject to provisions of
certain Acts and reservations, to:
• Sink shafts, excavations etc., for mining purposes.
• Construct dams, reservoirs, railways, etc., as needed.
• Erect buildings, machinery, furnaces, etc., as required and to treat ores.
OTHER PROPERTIES
Landore has other non-core exploration properties which include grass roots
exploration and defined drill targets.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
Landore believes that a successful project is best achieved through
maintaining close working relationships with First Nations and other local
communities. This social ideology is at the forefront of all of Landore's
exploration initiatives by establishing and maintaining co-operative
relationships with First Nations communities, hiring local personnel and using
local contractors and suppliers.
Careful attention is given to ensure that all exploration activity is
performed in an environmentally responsible manner and abides by all relevant
mining and environmental acts. Landore takes a conscientious role in all of
its operations and is aware of its social responsibility and its environmental
duty.
COVID-19
The spread of a novel strain of coronavirus ("COVID-19") and measures taken to
contain the spread of the virus continue to cause disruption to Landore's
exploration activities during this past year, however, the Company has
successfully operated in accordance with Government COVID-19 guidelines.
Michele Tuomi, P.Geo.
Director/VP Exploration, Landore Resources Canada Inc.
21 June 2022
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2021
Group Group
31 December 31 December
2021 2020
Notes £ £
Exploration costs 9 (2,927,247) (1,345,454)
Administrative expenses 25 (1,603,957) (1,363,949)
Operating loss (4,531,204) (2,709,403)
Other income 27 483,972 155,834
Gains on investments measured at fair value 12 55,515 -
Finance income 5 - 13
Loss before income tax (3,991,717) (2,553,556)
Income tax 8 - -
Loss for the year (3,991,717) (2,553,556)
Other comprehensive (loss)/income
Items that will subsequently be reclassified to profit or loss:
Exchange differences on translating foreign operations 18 25,500 (4,594)
Other comprehensive (loss)/income for the year net of tax 25,000 (4,594)
Total comprehensive loss for year (3,966,217) (2,558,150)
Loss attributable to:
Equity holders of the Company (3,991,144) (2,552,455)
Non-controlling interests (573) (1,101)
Total comprehensive loss attributable to:
Equity holders of the Company (3,965,644) (2,557,049)
Non-controlling interests (573) (1,101)
Loss per share for losses attributable to the equity holders
of the Company during the year
- basic 10 (0.04) (0.03)
- diluted 10 (0.04) (0.03)
The Group's operating loss relates to continuing operations.
Company Statement of Comprehensive Income
For the year ended 31 December 2021
Company Company
31 December 31 December
2021 2020
Notes £ £
Administrative expenses 25 (1,444,126) (1,127,692)
Operating loss (1,444,126) (1,127,692)
Interest receivable - 13
Foreign exchange gain/(loss) 475,131 (359,559)
Loss before income tax (968,995) (1,487,238)
Income tax expense - -
Total comprehensive loss for the year (968,995) (1,487,238)
The Company's operating loss relates to continuing operations.
Consolidated statement of financial position
As at 31 December 2021
Group Group
At At
31 December
31 December
2021 2020
Notes £
Assets
Non-current assets
Property, plant and equipment 11 81,059 23,416
Investments 12 287,259 -
368,318 23,416
Current assets
Trade and other receivables 13 75,122 139,524
Cash and cash equivalents 26 875,658 1,052,623
950,780 1,192,147
Capital and reserves attributable to the Company's
equity holders
Share capital - nil par value 15 50,179,599 46,108,934
Share-based payment reserve 16 979,409 921,133
Accumulated deficit 17 (49,692,080) (45,905,940)
Translation reserve 18 (322,611) (348,111)
Total equity shareholders' funds 1,144,317 776,016
Non-controlling interests 22 (4,901) (4,328)
Total equity 1,139,416 771,688
Liabilities
Current liabilities
Trade and other payables 14 179,682 409,410
Current income tax liabilities 14 - 34,465
179,682 443,875
Total liabilities 179,682 443,875
Total equity and liabilities 1,319,098 1,215,563
These consolidated financial statements were approved and authorised for issue
by the Board of Directors on 21 June 2022.
William
Humphries
Glenn Featherby
Director
Director
Company statement of financial position
As at 31 December 2021
Company Company
At At
31 December
31 December
2021 2020
Notes £
Assets
Non- current assets
Investment in subsidiaries 12 94,888 94,888
94,888 94,888
Current assets
Trade and other receivables 13 36,315,123 32,983,474
Cash and cash equivalents 26 585,793 549,559
36,900,916 33,533,033
Total assets 36,995,804 33,627,921
Equity
Capital and reserves attributable to the Company's
equity holders
Share capital - nil par value 15 50,179,599 46,108,934
Share-based payment reserve 16 979,409 921,133
Accumulated deficit 17 (14,235,785) (13,471,794)
Total equity shareholders' funds 36,923,223 33,558,273
Liabilities
Current liabilities
Trade and other payables 14 72,581 69,648
Total liabilities 72,581 69,648
Total equity and liabilities 36,995,804 33,627,921
These financial statements were approved and authorised for issue by the Board
of Directors on 21 June 2022.
William
Humphries
Glenn Featherby
Director
Director
Consolidated statement of changes in equity
For the year ended 31 December 2021
Equity shareholders' funds
Share-based Accumulated Translation
Share capital Non-controlling
nil par value payment deficit reserve interest Total
£ £ £ £ £ £
640,347 (43,353,485) (343,517) (143,979)
Balance as at 1 January 2020 42,915,903 (3,227)
Issue of options (note 16) - 220,435 - - - 220,435
Issue of warrants (note 16) - 60,351 - - - 60,351
Issue of ordinary share capital - nil par (note 15) - - - 3,503,539
3,503,539 -
Issue costs (note 15) (310,508) - - - - (310,508)
Total transactions with owners 3,193,031 280,786 - - - 3,473,817
Loss for the year - - (2,552,455) - (1,101) (2,553,556)
Exchange difference from translating
foreign operations (note 18) - - - (4,594) - (4,594)
Total comprehensive loss for the year - - (2,552,455) (4,594) (1,101) (2,558,150)
Balance as at 31 December 2020 46,108,934 921,133 (45,905,940) (348,111) (4,328) 771,688
46,108,934 921,133 (45,905,940) (348,111) (4,328) 771,688
Balance as at 1 January 2021
Issue of options (note 16) - 249,514 - - - 249,514
Issue of warrants (note 16) - 13,766 - - - 13,766
Issue of ordinary share capital - nil par (note 15) 4,305,931 - - - 4,305,931
-
Issue costs (note 15) (235,266) - - - - (235,266)
Options exercised (note 16) - (27,879) 27,879 - - -
Options lapsed (note 16) - (162,922) 162,922 - - -
Warrants exercised (note 16) - (14,203) 14,203 - - -
Total transactions with owners 4,070,665 58,276 205,004 - - 4,333,945
Loss for the year - - (3,991,144) - (573) (3,991,717)
Exchange difference from translating
foreign operations (note 18) - - - 25,500 - 25,500
Total comprehensive loss for the year - - (3,991,144) 25,500 (573) (3,966,217)
Balance as at 31 December 2021 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
Company statement of changes in equity
For the year ended 31 December 2021
Share capital Share-based Accumulated
nil par value payment deficit Total
£ £ £ £
640,347 (11,984,556) 31,571,694
Balance as at 1 January 2020 42,915,903
Issue of options (note 16) - 220,435 - 220,435
Issue of warrants (note 16) - 60,351 - 60,351
Issue of ordinary share capital - nil par (note 15) 3,503,539 - - 3,503,539
Issue costs (note 15) (310,508) - - (310,508)
Total transactions with owners 3,193,031 280,786 - 3,473,817
Loss for the year - - (1,487,238) (1,487,238)
Total comprehensive loss for the year - - (1,487,238) (1,487,238)
Balance as at 31 December 2020 46,108,934 921,133 (13,471,794) 33,558,273
46,108,934 921,133 (13,471,794) 33,558,273
Balance as at 1 January 2021
Issue of options (note 16) - 249,514 - 249,514
Issue of warrants (note 16) - 13,766 - 13,766
Issue of ordinary share capital - nil par (note 15) 4,305,931 - - 4,305,931
Issue costs (note 15) (235,266) - - (235,266)
Options exercised (note 16) - (27,879) 27,879 -
Options lapsed (note 16) - (162,922) 162,922 -
Warrants exercised (note 16) - (14,203) 14,203 -
Total transactions with owners 4,070,665 58,276 205,004 4,333,945
Loss for the year - - (968,995) (968,995)
Total comprehensive loss for the year - - (968,995) (968,995)
Balance as at 31 December 2021 50,179,599 979,409 (14,235,785) 36,923,223
Consolidated statement of cash flows
For the year ended 31 December 2021
Group Group
31 December 31 December
2021 2020
Notes £ £
Cash flows from operating activities
Operating loss (4,531,203) (2,709,403)
Other income and gains 27 539,486 155,834
Finance income 5 - 13
Depreciation of tangible fixed assets 11 11,634 8,629
Share options issued 16 249,514 220,435
Foreign exchange gain/(loss) on non-cash items 23,087 (44,961)
Non-cash Director remuneration 7 - 68,000
Non-cash option income (231,843) -
Non-cash exploration and evaluation expenditures - 43,582
Decrease/(increase) in trade and other receivables 65,392 (77,073)
(Decrease)/increase in trade and other payables (232,760) 144,437
Fair value gain on financial assets (55,515) -
Non-cash other income (34,465) -
Net cash used in operating activities (4,196,673) (2,190,507)
Cash flows from investing activities
Purchase of property, plant and equipment 11 (69,093) -
Net cash used in investing activities (69,093) -
Cash flows from financing activities
Proceeds from issue of ordinary shares 15 4,305,931 3,391,701
Issue costs 15 (221,500) (250,157)
Net cash generated by financing activities 4,084,431 3,141,544
(181,335) 951,037
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 1,052,623 107,668
Exchange gain/(loss) on cash and cash equivalents 4,370 (6,082)
Cash and cash equivalents at the end of the year 875,658 1,052,623
Company statement of cash flows
For the year ended 31 December 2021
Company Company
31 December 31 December
2021 2020
Notes £ £
Cash flows from operating activities
Operating loss (968,995) (1,127,692)
Finance income - 13
Foreign exchange loss on non-cash items (439,670) (359,559)
Non-cash Director remuneration 7 - 68,000
Share options issued 16 249,514 220,435
Increase in trade and other receivables (3,258,678) (1,434,585)
Increase in credit loss provision 13 366,699 -
Increase/(decrease) in trade and other payables 2,933 (15,698)
Net cash used in operating activities (4,048,197) (2,649,086)
Cash flows from financing activities
Proceeds from issue of ordinary shares 15 4,305,931 3,391,701
Issue costs 15 (221,500) (250,157)
Net cash generated by financing activity 4,084,431 3,141,544
36,234 492,458
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 549,559 57,101
Cash and cash equivalents at the end of the year 585,793 549,559
Notes
1. Publication of non-statutory accounts
The financial information, for the year ended 31 December 2021, set out in
this announcement does not constitute statutory accounts.
This information has been extracted from the Group's financial statements to
that date upon which the auditors' opinion is unmodified but contains material
uncertainty on going concern.
2. Basis of preparation
The financial information, for the year ended 31 December 2021, set out in
this announcement, has been:
· computed in accordance with EU-Adopted International Financial
Reporting Standards ("EU IFRSs"), however this preliminary announcement does
not contain sufficient information to comply with IFRSs. The EU IFRSs
compliant Consolidated Financial Statements will be published in the Annual
Report for the year ended 31 December 2020; and
· prepared on the basis of the accounting policies as stated in the
Annual Report for the year ended 31 December 2021.
3. Going concern
The Group raised £3.5m on 16 February 2021 with the intention of providing
sufficient funds to meet the planned operational expenditure and working
capital. In addition, warrant exercises between the year end and 6 June 2022
have raised gross proceeds of £804,605. Furthermore, 15,958,643 warrants with
an exercise price of 20p remain outstanding as at 6 June 2022 and are due to
expire on 14 July 2022. The Board anticipates a significant uptake in these
warrants prior to the expiry date.
On 8 April 2022, the Board appointed Strand Hanson Limited to undertake a
strategic review of the Company's Canadian subsidiary and assets. The options
under review include the sale of all or part of the Company's wholly owned
subsidiary, Landore Resources Canada Inc., the sale of the Junior Lake Project
and a potential Joint Venture arrangement or strategic partnership, or a
combination thereof.
Due to the location of the Group's principal assets, it is well protected from
the effects of any potential COVID-19 resurgence on its operations. Whilst
the Group is exposed to any wider economic implications from further
restrictions, the Board believe that its interests in a range of precious
metals combined with the drilling progress achieved in 2021 provide a
significant hedge to the potential exposure of further COVID-19 impacts. The
Group's operations during 2021 were unaffected by the pandemic.
The Board also notes the significant degree to which future expenditure is
uncommitted. Whilst the Board is pursuing maximum progress at Junior Lake,
in a downside scenario the Board has significant scope to control costs and
its cash management flexibility has been demonstrated over a number of years.
The Board is closely monitoring the cash position and took a strategic
decision not to raise funds earlier this year due the likely inflow from the
warrants and Lithoquest, whilst also considering the future plans following
the appointment of Strand Hanson to carry out the Strategic Review. The
Board wish to avoid a scenario whereby the Group has raised more liquid funds
than needed, at the expense of shareholder dilution.
The Group will continue to consider all options to maximise shareholder value
including reviewing the planned drilling programme and the Directors are
confident of raising further equity should the need arise if, for example, the
anticipated uptake from the exercise of warrants does not materialise.
Whilst the group has reported a comprehensive loss after tax for the year
ended 31 December 2021 amounting to £4.0m, the Board is satisfied the Group
will have sufficient cash to meet its requirements for a period of at least 12
months from the date of approval of these consolidated financial statements,
however, the above conditions relating to future funding indicate the
existence of a material uncertainty which may cast doubt about the Group's
ability to continue as a going concern. The consolidated financial
statements do not include adjustments that would result if the Group was
unable to continue as a going concern.
The consolidated financial statements are prepared on a going concern basis
with a reasonable expectation that the Group has adequate resources to
continue in operational existence for a period of at least 12 months for the
date of approval of these consolidated financial statements.
4. Annual Report
The Annual Report for the year ended 31 December 2021, Notice of the Annual
General Meeting and Form of Proxy will shortly be available on the Company's
website at www.landore.com (http://www.landore.com)
The Annual General Meeting of Landore Resources Limited will be held at La
Tonnelle House, Les Banques, St Sampson, Guernsey, GY1 3HS on 22 July 2022 at
12.30 pm.
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