REG - Landore Resources Ld - Grant of Option - Lithium Claim Block

Landore ResourcesAnnouncement

06/03/2023 07:00

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RNS Number : 9260R  Landore Resources Limited  06 March 2023

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-LITHIUM CLAIM BLOCK

JUNIOR LAKE PROPERTY

 

Landore Resources Limited ("Landore Resources" or "the Company") is pleased
to confirm that the Company's 100% owned subsidiary Landore Resources Canada
Inc. has entered into an option agreement with Green Technology Metals Limited
("GT1") which provides GT1 with the right to purchase an 80 per cent. interest
(the "Option") in certain tenements which contain Lithium prospects, located
within the Junior Lake Project, (the "Lithium Claim Blocks").

Under the terms of the Option, GT1 has the right to purchase an 80 per cent.
interest in the Lithium Claim Blocks, which comprise 591 staked mineral claims
for 10,856 hectares, in return for staged payments over three years to Landore
("Staged Payments") totalling C$2,500,000 in cash and an additional
C$1,500,000 either in cash or by issuing Landore with new common shares in GT1
as set out below:

·    Initial cash payment of C$500,000 (within 5 business days of
execution of the option agreement (the "Effective Date"));

·    Cash payment of C$500,000 on or before the date which is 12 months
after the Effective Date;

·    Cash payment of C$500,000, plus a further C$500,000 payable either in
cash or through the issue of new shares in GT1 to Landore (at GT1's election)
on or before the date which is 24 months after the Effective Date

·    Cash payment of C$1,000,000, plus a further C$1,000,000 payable
either in cash or through the issue of new shares in GT1 to Landore (at GT1's
election) on or before the date which is 36 months after the Effective Date

The consideration received by the Company pursuant to the Option agreement
will be applied towards Landore's working capital requirements. In the event
Landore receives new shares in GT1 as consideration, it is the Company's
intention that these will be disposed of in an orderly manner in due course.

 

Commenting on this report, Chief Executive Officer of Landore Resources, Bill
Humphries, said:

 

"The Directors are extremely pleased to have concluded this transaction with
Green Technology Metals, our near neighbor of Junior Lake, for the option to
explore and advance our northern Lithium Claims. Landore's retained 20%
interest will allow us to participate in the upside of GT1 exploration and
development success on this highly prospective property. In addition, the
regular income from this transaction together with the scheduled payments of
the Miminiska property will allow Landore to concentrate on advancing our BAM
Gold Deposit through Pre Feasibility studies and drilling towards
development."

Subject to the Staged Payments being made in line with the above schedule,
Landore will transfer the 80% Option Interest to GT1, and Landore and GT1 will
be associated in an unincorporated joint venture in respect of the project
("JV") where GT1's initial interest in the JV will be 80% and Landore's shall
be 20%, on the terms set out below.

·    Landore's 20% interest in the JV shall be free carried through to
completion of a Feasibility Study, following which the parties are to
contribute to further exploration and development expenditure on a pro-rata
basis in accordance with their then-current joint venture interest. If a party
does not contribute their pro rata share, their shareholding will be diluted.

·    The JV will form an initial Management Committee comprised solely of
representatives from GT1 which shall determine and set overall policies,
objectives, procedures and actions for the purposes of conducting the JV (to
the extent not already in place). From the completion of the feasibility
study, the Management Committee shall be comprised of five (5)
representatives, appointed in proportion to each party's percentage interest
in the JV, initially being four (4) representatives appointed by GT1, and one
(1) representative appointed by Landore.

·    Should Landore's interest in the JV decrease below 10%, Landore's
interest will be automatically converted into a 2.0% net smelter royalty (2%
NSR), GT1 will become sole owner of the Lithium Claim Block and the JV shall
automatically be terminated.

·    If Landore's interest in the JV is converted to the 2% NSR, GT1 has
the right to repurchase and extinguish 1.0% by paying Landore C$1,500,000 at
any time up until the 2-year period following the declaration of Commercial
Production;

·    GT1 will also assume and be bound to satisfy the existing 2.0% Net
Smelter Royalty, and obtain rights to repurchase 1.0% of the existing royalty
upon payment of $1,000,000, which is over the Swole Lake Project (which is
comprised of 9 mineral claims within Junior Lake located in and around the
Swole Lake lithium occurrence); and

·    GT1 holds pre-emptive rights on Landore's joint venture interest and
its 2% NSR should Landore wish to dispose of them to a third party.

GT1's Proposed Exploration Program for the Lithium Claim Block

GT1 owns a portfolio of lithium exploration claims in north-west Ontario,
nearby to the Junior Lake Property. GT1 plans to undertake a two-phase
exploration program at the Junior Lake Property commencing in June 2023. Phase
one exploration will initially consist of geological mapping and sampling of
the Despard and Swole target areas to identify additional drill targets at the
property and will be followed by a phase two maiden 1200m diamond drilling
program initially focusing on the Despard target area. The two-phase program
is anticipated to commence in Q3, subject to approvals, and to be completed by
Q4 2023.

The Junior Lake Property

The Junior Lake Property, 100% owned by Landore Resources, together with the
contiguous Lamaune Iron property (90.2% owned) (jointly the "Junior Lake
Property"), consisting of 33,029 hectares, is located in the province of
Ontario, Canada, approximately 235 kilometers north-northeast of Thunder Bay
and is host to: the BAM Gold Deposit; the B4-7
Nickel-Copper-Cobalt-Platinum-Palladium Deposit; the VW Nickel-Copper-Cobalt
Deposit; Lamaune Gold Prospect; Lamaune Iron Prospect and numerous other
precious and base metal occurrences.

The Lithium Claim Block, which is located in the northern part of the Junior
Lake Property, consists of 10,856 hectares and hosts a number of
lithium-bearing pegmatites, with three drill-ready prospects identified from
historic exploration activity:

·    The Swole Lake target is a spodumene bearing pegmatite located in the
centre of the Junior Lake property, 10 kilometers to the east of the Despard
Lithium occurrence. Landore completed a ten diamond hole drill program in
2011, with drill results returning intersections of 1.12% Li2O over 3.1m and
1.14% Li2O over 8.8m

 

·    The Tape Lake target consists of two spodumene bearing pegmatites
ranging from 5m to 2.5m width, which have had not been previously drill
tested. The pegmatites are located 5 kilometres north of Swole Lake and rock
chip samples from one pegmatite dyke have returned 1.04%, 1.219% and 2.37%
Li2O.

 

·    The Despard Lithium target located approximately 2 kilometres east of
the Western boundary of Junior Lake holding outcrop and boulders containing up
to 30% spodumene, with historical drilling intersecting 1.68% Li2O over 6.1
metres, 1.70% Li2O over 2.01 metres and 1.53% Li2O over 2.74 metres.

As an exploration asset, the Lithium Claim Block currently generates no
revenues or profits and at 31 December 2022, for accounting purposes, had a
book value of nil.

Landore's plans for 2023

Landore will continue to focus on advancing its highly prospective BAM Gold
Project, targeting a two-million-ounce resource, which is expected to
concentrate on:

·    The underground potential at BAM as identified by CUBE in the May
2022 Resource Upgrade and presentation.

·    Advancing the existing Inferred resource into an Indicated Resource
together with infilling the exploration targets to the immediate east and west
of the resource.

·    Commencing pre-feasibility studies in Q2 to advance the BAM Project
towards production.

Further information on the property is available on Landore's website
www.landore.com.

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

 

Green Technology Metals Limited (ASX:GT1)

GT1 is a North American focussed lithium exploration and development business
with a market capitalisation of approximately A$171 million. The Company's
100% owned Ontario Lithium Projects comprise high-grade, hard rock spodumene
assets (Seymour, Root and Wisa) and lithium exploration claims (Allison and
Solstice) located on highly prospective Archean Greenstone tenure in
north-west Ontario, Canada.

All sites are proximate to excellent existing infrastructure (including hydro
power generation and transmission facilities), readily accessible by road, and
with nearby rail delivering transport optionality.

Seymour has an existing Mineral Resource estimate of 9.9 Mt @ 1.04% Li2O
(comprised of 5.2 Mt at 1.29% Li2O Indicated and 4.7 Mt at 0.76% Li2O
Inferred).1 Accelerated, targeted exploration across all three projects
delivers outstanding potential to grow resources rapidly and substantially.

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