Subscription

RNS Number : 0950E

Landore Resources Limited

30 October 2015

 



30 October 2015

LANDORE RESOURCES LIMITED

("Landore Resources" or the "Company")

Landore Resources raises C$1.325 million

Landore Resources (AIM: LND) is pleased to announce it has raised gross proceeds of approximately C$1.325 million (£656,820) through a subscription (the "Subscription") of 109,470,000 new ordinary shares of 1p each in the Company (the "New Ordinary Shares") at a price of 0.6 pence per New Ordinary Share (the "Issue Price").

The Issue Price represents a discount of 14.3 per cent. to the closing middle market price of 0.7 pence per ordinary share on 29 October 2015, being the last trading day prior to this announcement and the New Ordinary Shares represent approximately 17.5% of the enlarged issued share capital. 

The net proceeds of the Subscription will be used to fund a 2,000 metre drill programme to follow up on priority targets identified by the recently completed Mineral Potential Investigation and Geophysical Review, to carry out metallurgical and geotechnical works and to provide general working capital for the Company.

Changes in Directors' disclosable interests pursuant to the Subscription are as set out below. 

Director	New Ordinary Shares subscribed	Shareholding immediately following admission	Percentage of enlarged issued share capital
William Humphries	10,000,000	49,914,119	7.96
Richard Prickett	1,700,000	9,955,899	1.59
Helen Green	500,000	1,027,583	0.16

Commenting on today's announcement, Bill Humphries, Chief Executive of Landore Resources, said:

"We are very pleased with the strong support given by our shareholders with this fundraise, the proceeds of which will enable us to drill-test priority exploration targets and continue development studies on the B4-7 and VW deposits on our highly prospective Junior Lake Nickel property. Progress reports on the above programme, scheduled to commence 12^th November 2015, will be issued as results come to hand."

The accompanying investor presentation used for the Subscription is available on the Company's website:www.landore.com 

Further details on the Subscription

The Subscription is conditional on admission of the New Ordinary Shares to trading on AIM ("Admission").  Although the Issue Price is at a discount to nominal value, as permitted by the Companies (Guernsey) Law 2008 (as amended), the New Ordinary Shares will be issued fully paid and will rank pari passu in all respects with the Company's existing ordinary shares 1p each ("Ordinary Shares"). Application will be made to the London Stock Exchange for Admission in two tranches.  It is expected that Admission of the initial tranche of 104,470,000 New Ordinary Shares ("Tranche 1 New Ordinary Shares") will become effective and that dealings in such New Ordinary Shares will commence at 8.00 a.m. on 6 November 2015. Following Admission of the Tranche 1 New Ordinary Shares the Company's issued share capital will consist of 621,953,825 Ordinary Shares with voting rights. Landore Resources does not hold any Ordinary Shares in treasury. A further announcement will be made in due course regarding Admission of the second tranche of 5,000,000 New Ordinary Shares.

The aforementioned figure of 621,953,825 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Landore Resources under the Financial Service Authority's Disclosure and Transparency Rules.

The participation of certain of the Directors and certain substantial shareholders in the Subscription is deemed to be a related party transaction under the AIM Rules. Accordingly, Charles Wilkinson, the independent Director, confirms that, having consulted with Strand Hanson Limited, the Company's nominated adviser, he considers that their participation in the Subscription is fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Bill Humphries/Richard Prickett

Landore Resources Limited

M: [phone]

M: [phone]

Angela Hallett / James Spinney

Strand Hanson Limited

Nominated Adviser and Broker

Tel: [phone]

 

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