Landore Resources Limited ("Landore Resources" or the "Company") - Drilling commences and Oversubscribed Placing and Subscription to raise £2.6m

LONDON, July 7, 2014 /CNW/ -

NEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY NEW ORDINARY SHARES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.   

Landore Resources (AIM: LND) is pleased to announce it has raised, through its broker Hume Capital Securities plc, gross proceeds of £2.6 million through an oversubscribed placing (the "Placing") of 36,600,000 new ordinary shares of 1p each in the Company (the "Placing Shares") and subscription (the "Subscription") of 67,400,000 new ordinary shares of 1p each in the Company (together with the Placing Shares, the "New Ordinary Shares") each at a price of 2.5 pence per New Ordinary Share (the "Issue Price").

The Issue Price represents a discount of 20 per cent. to the closing middle market price of 3.125 pence per ordinary share on 4 July 2014, being the last trading day prior to this announcement and the New Ordinary Shares represent approximately 20.1% of the enlarged issued share capital.

The net proceeds of the Placing and Subscription will be used to fund a 6,000 metre drilling programme, which is commencing today to test the prospective targets identified by the 2014 3D DCIP+MT ground geophysics survey 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 1,200,000 38,160,000 7.37
Richard Prickett 400,000 8,255,899 1.60
Charles Wilkinson 400,000 2,154,047 0.42
Helen Green 400,000 527,583 0.10

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

"The Directors are very pleased with the high level of support given to Landore with this fundraise by both existing and new shareholders. We are now fully funded and the additional funds from the oversubscription will all be put into the ground with follow up drilling on our exciting geophysical anomalies between the B4-7 and VW nickel deposits."

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

Further details on the Placing

The Placing and Subscription are conditional on admission of the New Ordinary Shares to trading on AIM ("Admission"). The New Ordinary Shares will be 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 and it is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on Monday, 14 July 2014. Following Admission the Company's issued share capital will consist of 517,483,825 Ordinary Shares with voting rights. Landore Resources does not hold any Ordinary Shares in treasury.

The aforementioned figure of 517,483,825 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 the Directors and certain substantial shareholders in the Subscription is deemed to be a related party transaction under the AIM Rules. Given that there are no independent Directors, Strand Hanson Limited, the Company's nominated adviser, considers that their participation in the Subscription is fair and reasonable insofar as the Company's shareholders are concerned.

SOURCE Landore Resources Limited

For further information:

Enquiries: 

Bill Humphries/Richard Prickett
Landore Resources Limited
Tel: +44(0)20 7409 7444

Angela Hallett / James Spinney
Strand Hanson Limited
Nominated Adviser
Tel: +44(0)20 7409 3494

Jon Belliss
Hume Capital Securities plc
Tel: +44 (0)20 3693 1470