REG - Landore Resources Ld - Interim Results to 30 June 2024
30/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240930:nRSd1606Ga&default-theme=true
RNS Number : 1606G Landore Resources Limited 30 September 2024
LANDORE RESOURCES LIMITED
Interim Consolidated Results for the six months ended 30 June 2024
London, United Kingdom - 30 September 2024 - Landore Resources Limited
(AIM: LND) ("Landore Resources" or the "Company"), is pleased to announce
its unaudited interim consolidated results for the six months ended 30 June
2024.
Highlights:
· Approximately £4.28m gross of new equity raised during and post
the reporting period, to principally fund the advancement of the group's
flagship BAM Gold Project ("BAM" or "the Project"), from certain existing and
new strategic investors including Luso Global Mining B.V. ("LGM"), a
subsidiary of Mota-Engil SGPS S.A. (EGL: MOTA.LS).
· Appointment of Alexander Shaw, Managing Director & CEO of LGM,
to the Board as Chief Executive Officer ("CEO") on 8 July 2024 to spearhead
the next phase of the Company's growth and development.
· Rescheduling and extension of the pre-existing option agreement
with Storm Exploration Inc. over 100% of the group's Miminiska Lake and
Keezhik Lake properties in the Thunder Bay Mining district.
· Released results of 2023 soil sampling programme carried out along
strike to the east and west of BAM, which identified new trends in the Junior
Lake East Grid and Lamaune Gold Prospect areas with direct drill targets and
several anomalies in the underexplored southern portion of the Grassy
Pond/Felix Lake area, representing a potential new gold zone.
· Loss for the period of £1,097,319 (30 June 2023: £822,251) with
exploration costs of £132,573 (2023: £242,502).
· Total assets of £2,279,112 as at the half-year end (31
December 2023: £1,003,285).
· Cash position of £2,096,773 as at the half- year end (31 December
2023: £564,682) and debt free.
· Series of planned technical activities announced designed to enhance
BAM's existing geological model, identify potential gaps and maximise
understanding of the orebody architecture.
· Advancement of community engagement with First Nations communities
in Ontario.
Landore Resources' CEO, Alexander Shaw, commented:
"The first half of 2024 and to date has marked a busy period for the Company
as it has continued to seek to progress its flagship and highly prospective
BAM Gold Project located in Junior Lake, Northwest Ontario.
Significant events include the recently completed £3.68m gross fundraising,
marking a huge vote of confidence from major investors including new strategic
investor LGM, and high-profile mining investors Rick Rule and Eric Sprott.
Junior Lake marks the discovery of a new gold district and BAM's enormous
potential was one of the main reasons I have joined Landore Resources as its
new CEO alongside its other attractive portfolio assets. We intend to utilise
the significant data already available on BAM over the coming months to
establish a clearer picture of the geological model and better understand
where the high-grade mineralisation is situated before commencing a highly
targeted 3,500m drilling programme. Our new structural geologist will conduct
analysis and increase understanding of the controls on BAM's mineralisation
working closely with TECT Geological Consultancy. Preserving and creating
additional shareholder value is a major priority in my role as CEO and I want
to avoid repeating past mistakes by deploying capital more efficiently and to
maximum effect.
The technical workstreams underway will aim to add knowledge which will
contribute to increasing the confidence associated with the BAM ore body and
lay the foundation for adding ounces to our existing 1.5Moz NI 43-101 resource
estimate in the measured, indicated and inferred categories. Ultimately, our
aim is to increase the grades in the most cost-effective way possible and I
look forward to providing updates on the progress of our technical activities
over the rest of the year and unlocking BAM's full potential."
For further information, please contact:
Landore Resources Limited
Alexander Shaw (CEO)
Tel: +44 (0)7799 005916
Strand Hanson Limited (Nominated Adviser and Joint Broker)
James Dance/Matthew Chandler/Robert
Collins
Tel: 020 74093494
Novum Securities Limited (Joint Broker)
Jon Belliss/Colin Rowbury
Tel: 020 73999402
Burson Buchanan (Financial PR)
Bobby Morse (landore@buchanancomms.co.uk)
Tel: 020 74665000
About Landore Resources
Landore Resources (AIM: LND) is the 100% owner of the highly prospective BAM
Gold Project, Northwestern Ontario, Canada, which has an NI 43-101 compliant
resource estimate of 1.5m oz Au (Indicated: 1.03m oz from 30.96Mt @ 1.0g/t;
Inferred: 467,000oz from 18.3M/t @ 0.8g/t). Ontario is Canada's largest gold
producing province, and produced 3.9m oz, accounting for 41% of Canada's total
gold production in 2023. Landore Resource's strategic objective is to
crystallise value from BAM's last estimated NPV of US$333.6m @ US$1,800/oz
spot (from May 2022 PEA), as well as generating additional value from its
non-core portfolio of precious and battery metals projects in eastern Canada
and the USA.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Management Discussion & Analysis
General
The following discussion of performance, financial condition and future
prospects should be read in conjunction with the unaudited condensed interim
consolidated financial statements of Landore Resources Limited ("Landore
Resources" or the "Company") and its subsidiaries (together, the "Group") and
the notes thereto for the period from 1 January 2024 to 30 June 2024. Unless
otherwise indicated, all amounts are stated in sterling.
Overview
Landore Resources is admitted to trading on the AIM market operated by London
Stock Exchange plc, with the trading symbol LND.L. The Company is based in
Guernsey in the Channel Islands and its 100 per cent. owned operating
subsidiary, Landore Resources Canada Inc. ("Landore Canada"), is engaged in
the exploration and development of a portfolio of precious and base metal
properties in North America.
Financial Results
The financial results for the six months to 30 June 2024 show a loss of
£1,119,676 (30 June 2023: £846,929). Exploration costs were £132,573 (30
June 2023: £242,502).
The Group's cash at bank at 30 June 2024 was £2,096,773 (31 December 2023:
£564,682) and the Group has no debt.
In early January 2024, the Company raised £600,000 gross by way of a
subscription and a placing at 2.4 pence per share arranged by the Company's
Joint Broker, Novum Securities Limited ("Novum").
On 12 June 2024, the Company announced a more substantial fundraising of
approximately £3.68m before expenses by way of a two tranche subscription at
the same price of 2.4 pence per share. The first tranche of £1.92m utilised
the Company's existing share capital authorities and the net proceeds are
reflected in the 30 June 2024 cash balance stated above. The second tranche
of approximately £1.76m was conditional on the requisite shareholder
approvals which were obtained at the Company's Annual General Meeting ("AGM")
held on 8 July 2024 such that the net proceeds were received post the
reporting period end. The fundraising was cornerstoned by a new strategic
investor, Luso Global Mining B.V. ("LGM"), a subsidiary of the Portuguese
quoted Mota-Engil SGPS S.A. (EGL: MOTA.LS) alongside two well renowned and
highly experienced natural resource focused investors. In conjunction with
the fundraising, Mr Alexander Shaw, Managing Director and CEO of LGM and a
highly accomplished and experienced geologist, was appointed as the Company's
new Chief Executive Officer on 8 July 2024.
Operations Report
The Junior Lake Property:
The Company's principal focus is its Junior Lake property, 100 per cent. owned
by Landore Canada, which 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 including lithium.
BAM Gold Deposit:
Work programmes to-date have brought the BAM Gold Project's in-situ resource
estimate to 49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000
ounces of gold (oz Au) including 30,965,000t at 1.0g/t for 1,029,000 ounces
gold in the Indicated Category (Source: February 2022 NI 43-101 compliant
mineral resource estimate, at a 0.3g/t cut-off).
On 9 May 2022, Landore Resources announced a positive preliminary economic
assessment ("PEA") which indicated that under certain assumed conditions and
using a long term gold price of US$1,800 the BAM Gold Project could
potentially generate a pre-tax and post-tax NPV of, respectively, US$333.6m
and US$231.2m and pre-tax and post-tax real IRRs of 87.4% and 66.7%. The BAM
Gold Project has an after-tax simple pay back of 1.25 years from the start of
production or 2.25 years from the start of the project.
Strategic focus for 2024
Landore Resources' focus in 2024 is on advancing its highly prospective
flagship BAM Gold Project via the completion of planned technical activities
designed to enhance the project's existing geological model, identify
potential gaps and maximise understanding of the orebody architecture,
including:
• Structural geology study by leading South African-based structural
geologists TECT Geological Consultancy, to be completed in Q4 2024;
• Infill sampling of historical drill core in areas of
interest identified following reinterpretation of the existing geological
model, scheduled to commence in Q4 2024;
• Targeted channel sampling focusing on known outcrops along
strike to the east of the currently delineated BAM deposit, scheduled to
commence in Q4 2024;
• A 3,500 metre drilling campaign at BAM to target
highly prospective extensions of previously undrilled mineralised domains and
areas of interest identified within the previous mineral resource estimate,
scheduled to commence once optimised target areas have been defined by the
aforementioned activities;
• Gold deportment studies and additional metallurgical test
work, scheduled to commence after completion of the aforementioned activities.
In addition to the above deposit works, a soil sampling programme focusing
along strike to the east of the existing BAM deposit will also be completed in
Q4 2024 to build on the findings of previous soil sampling conducted between
2019 and 2023. Anomalies generated from the soil sampling will be used for
future exploration drill targeting to expand the existing gold resource.
To date, 17.5 kilometres along the Junior Lake shear zone from the Placer Dome
Gold prospect in the west to east of the BAM Gold Deposit has now been covered
by extensive soil sampling. This sampling has identified multiple new gold
trends in the Junior Lake East Grid, Grassy Pond/Felix Lake and Lamaune Gold
Prospect areas with direct drill targets.
The continued 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 future of the
Junior Lake Property hosting a multi-million ounce gold deposit.
Social and environmental responsibility
The Group believes that a successful project is best achieved through
maintaining close working relationships with the First Nations and other local
communities. This social ideology is at the forefront of the Group's
exploration initiatives and the Company seeks to establish and maintain
co-operative relationships with First Nations communities, hiring local
personnel and using local contractors and suppliers where possible. 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 Resources takes a conscientious role towards its
operations, and is aware of its social responsibility and its environmental
duty.
27 September 2024
LANDORE RESOURCES LIMITED
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Group
Group
Six months ended Six months ended
30 June 2024 30 June 2023
Notes £
£
Exploration costs 2 (132,573) (242,502)
Administrative expenses (763,371) (964,773)
Operating loss (895,944) (1,207,275)
Other income - 451,988
Loss on disposal of non-current investments (22,682) (54,887)
Loss on non-current investments measured at fair value (178,693) (12,077)
Loss before income tax (1,097,319) (822,251)
Income tax expense - -
Loss for the period (1,097,319) (822,251)
Other comprehensive income: Items that will subsequently be reclassified to
profit or loss
Exchange difference on translating foreign
operations (22,357) (24,678)
Other comprehensive loss for the year
net of tax (22,357) (24,678)
Total comprehensive loss for the period (1,119,676) (846,929)
Loss attributable to:
Equity holders of the Company (1,096,991) (822,610)
Non-controlling interests (328) 359
(1,097,319) (822,251)
Total comprehensive loss attributable to:
Equity holders of the Company (1,119,348) (847,288)
Non-controlling interests (328) 359
(1,119,676) (846,929)
Loss per share attributable to the
equity holders of the Company during the period
- Basic and diluted (£) 3 (0.007) (0.008)
The Group's operating loss relates to continuing operations. The notes on
pages 9 to 11 form part of these unaudited interim consolidated financial
statements.
LANDORE RESOURCES LIMITED
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2024
Group Group
Group
As at As
at As at
30 June 2024 30 June 2023 31 December 2023
Notes
£
£ £
Assets
Non-current assets
Property, plant and equipment 45,220 59,870 53,091
Investments - 87,970 331,585
45,220 147,840 384,676
Current assets
Trade and other receivables 73,229 68,331 53,927
Cash and cash equivalents 2,096,773 397,109 564,682
Other investments 63,890 - -
2,233,892 465,440 618,609
Total assets 2,279,112 613,280 1,003,285
Equity
Capital and reserves attributable to the Company's equity holders
Share capital 4 54,942,655 51,926,526 52,472,522
Share options reserve 632,323 570,500 621,056
Retained earnings 5 (53,719,356) (51,948,655) (52,622,365)
Cumulative translation reserve (360,981) (325,711) (338,624)
Total equity shareholders' funds 1,494,641 222,660 132,589
Non-controlling interests (7,159) (5,339) (6,831)
Total equity 1,487,482 217,321 125,758
Liabilities
Current liabilities
Trade and other payables 791,630 395,959 877,527
791,630 395,959 877,527
Total liabilities 791,630 395,959 877,527
Total equity and liabilities 2,279,112 613,280 1,003,285
The notes on pages 9 to 11 form part of these unaudited interim consolidated
financial statements.
LANDORE RESOURCES LIMITED
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Share Share-based payment Accumulated deficit Translation Non- Total
Capital nil par value £ £ reserve controlling £
£ £ interest
£
Balance at 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
1 January 2023
Loss for the period - - (822,610) - 359 (822,251)
Other comprehensive loss in the period - - - (24,678) - (24,678)
Exercise or lapse of warrants - (13,766) 13,766 - - -
Balance at 570,500 (51,948,655) (325,711) (5,339) 217,321
30 June 2023
51,926,526
Balance at 52,472,522 621,056 (52,622,365) (338,624) (6,831) 125,758
1 January 2024
Loss for the period - - (1,096,991) - (328) (1,097,319)
Other comprehensive income in the period - - - (22,357) - (22,357)
Issue of ordinary share capital 2,470,133 - - - - 2,470,133
Issue of warrants - 11,267 - - - 11,267
Balance at 632,323 (53,719,356) (360,981) (7,159) 1,487,482
30 June 2024
54,942,655
The notes on pages 9 to 11 form part of these unaudited interim consolidated
financial statements.
LANDORE RESOURCES LIMITED
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Group Group
Six months ended Six months ended
30 June 2024 30 June 2023
£ £
Cash flows from operating activities
Operating loss (1,097,319) (822,251)
Loss on disposal of non-current asset investments 22,682 54,887
Foreign exchange loss on non-cash items (8,222) 856
Investment fair value losses 178,693 12,077
Depreciation of tangible fixed assets 6,512 6,728
(Decrease)/increase in receivables (19,944) 40,662
Decrease in payables (77,470) (116,611)
Net cash outflow from operating activities (995,068) (823,652)
Cash flows from investing activities
Proceeds from disposal of non-current asset investments 59,613 10,896
Net cash used in investing activities 59,613 10,896
Cash flows from financing activities
Issue of ordinary share capital and warrants 2,520,000 -
Issue costs (38,600) -
Net cash inflow from financing activities 2,481,400 -
Net (decrease)/increase in cash and cash equivalents 1,545,945 (812,756)
Cash and cash equivalents at beginning of period 564,682 1,235,528
Exchange loss on cash and cash equivalents (13,854) (25,663)
Cash and cash equivalents at end of the period 2,096,773 397,109
The notes on pages 9 to 11 form part of these unaudited interim consolidated
financial statements.
LANDORE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
1 Basis of accounting and accounting policies
The unaudited interim consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the United Kingdom at the time of preparing these financial
statements. The Directors have elected not to apply IAS 34 Interim Financial
Reporting.
The interim consolidated financial statements have not been audited and have
been prepared on the historical cost basis. The principal accounting policies
adopted are consistent with those adopted in the audited annual consolidated
financial statements for the year ended 31 December 2023.
2 Exploration expenditure and mineral properties
Net
Accumulated
1 January expenditure expenditure
2024 in period
30 June 2024
£ £
£
Junior Lake/Lamaune Lake 29,859,766 123,284 29,983,050
Miminiska Lake 1,535,042 - 1,535,042
Lessard 90,341 - 90,341
Frond Lake 61,558 - 61,558
Wottam 709,122 - 709,122
Others, including Swole Lake, West Graham and Root Lake 146,751 9,289 156,040
32,402,580 132,573 32,535,153
Mineral properties at 30 June 2024 represent
accumulated costs to date incurred by Landore Resources Canada Inc., a
subsidiary of Landore Resources Limited. On acquisition of Landore Resources
Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was
considered to be £nil. All subsequent expenditure has been charged to the
income statement in accordance with the Group's accounting policy.
3 Loss per share
The loss per share is based on the loss for the period and the weighted number
of ordinary shares in issue during the period, being 149,830,043 (30 June
2023: 106,553,257).
Diluted loss per share
The potential ordinary shares which arise as a result of the options in issue
are not dilutive under the terms of IAS 33 because they would not increase the
loss per share. Accordingly, there is no difference between the basic and
dilutive loss per share.
LANDORE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
4 Share capital
30 June 31 December
2024 2023
£ £
Issued:
227,013,058 (31 December 2023: 122,013,058) ordinary shares of nil par value
each
54,942,655 52,472,522
In the period, 105,000,000 new ordinary shares and certain warrants were
issued to raise additional capital to fund the Group's activities. Gross
proceeds were £2,520,000, with issue costs of £38,600.
Share
capital
£
At 1 January 2024 52,472,522
Shares issued in the period 2,470,133
At 30 June 2024 54,942,655
5 Retained earnings
£
At 1 January 2024 (52,622,365)
Loss for the period (1,096,991)
At 30 June 2024 (53,719,356)
6 Events after the interim reporting period
On 12 June 2024, the Company announced that it had conditionally raised
£3.683 million before expenses, at a subscription price of 2.4 pence per
share (the "Subscription Price") by way of a two tranche subscription. The
first tranche of the subscription for a total of £1.92 million completed
prior to 30 June 2024. The second tranche of the subscription for the
remaining £1.763 million completed following receipt of the requisite
shareholder approvals which were obtained at the Company's Annual General
Meeting ("AGM") held on 8 July 2024.
As further announced on 12 June 2024 and pursuant to the authorities granted
at the abovementioned AGM, on 8 July 2024 Helen Green, non-executive director,
and Michele Tuomi, CEO of Landore Resources Canada Inc., subscribed £10,000
and £5,000, respectively for, in aggregate, 625,000 new ordinary shares at
the subscription price. In addition, Glenn Featherby, Executive Director,
agreed to settle £60,000 of accrued fees/salary from 1 January 2024 to 31 May
2024 by way of the issue of 2,500,000 new ordinary shares at the Subscription
Price.
LANDORE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
6 Events after the interim reporting period continued
Following admission of the abovementioned second tranche subscription shares,
the director and management subscription shares and the director fee shares to
trading on AIM on 9 July 2024, there are currently 312,816,612 ordinary shares
in issue with voting rights.
In addition, as part of the abovementioned fundraising, the Company issued, in
aggregate, 10,355,720 warrants to Novum Securities Limited and SCP Resource
Finance LP, in connection with their services pursuant to the subscription.
Each warrant affords the holder the right to acquire a new ordinary share at
an exercise price of 2.4 pence for a period of three years from the date of
admission of the second tranche subscription shares.
Alongside the fundraising, Mr Alexander Shaw, a representative of the
cornerstone investor, Luso Global Mining B.V., was appointed as the Company's
new Chief Executive Officer on 8 July 2024.
Further to the Company's previous announcements in relation to the
pre-existing option agreement to dispose of a 100% interest in the Group's
Miminiska Lake and Keezhik Lake properties in the Thunder Bay Mining District,
Northern Ontario between its subsidiary, Landore Canada and Storm Exploration
Inc. (TSX-V: STRM) ("Storm"), on 19 August 2024, the Company announced that it
had agreed a rescheduling and extension of up to 18 months in respect of the
remaining amount payable by Storm to Landore Canada. The remaining payments
due to Landore Canada are now scheduled for receipt as follows:
Payment Date Cash
Convertible Cash**
20-Sep-2024* C$262,500 C$250,000
20-Mar-2025 Nil
C$275,000
20-Mar-2026 C$525,000 C$787,500
Notes:
* - this payment has yet to be received at the date of approval of these
interim results, however the Company notes Storm's announcement of 16
September 2024 that it is conducting a non-brokered private placement to raise
up to C$1.6m from which the Company's Board anticipates the first payment
above will be settled. Accordingly, the Company will monitor the situation and
enter into further discussions with Storm in the event their fundraising is
not successfully completed and/or payment is not forthcoming in due course.
** - Storm can elect to make Convertible Cash payments in the form of cash or
new Storm shares with the number of shares to be determined by reference to
the 30-day volume weighted average price prior to the date of election.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR UKRRRSOUKUURRecent news on Landore Resources
See all newsREG - Landore Resources Ld - Completion of BAM Mineral Rights Acquisition
AnnouncementREG - Landore Resources Ld - Director’s Dealing
AnnouncementREG - AIM - AIM Notice - 27/03/2025
AnnouncementREG - Landore Resources Ld - Acquisition of Additional BAM Mineral Rights
AnnouncementREG - Landore Resources Ld - Receipt of Option Payment from Storm
Announcement