TIDMLND
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 .
S
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Tel: 07734 681262
Officer
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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END
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