LONDON, July 11, 2016 /CNW/ - Landore Resources Limited (AIM:LND) ("Landore" or "the Company") today announces that Ardiden Limited ("Ardiden") has exercised its option to purchase 100% of Landore's Root Lake Lithium Property ("Root Lake"), located in north western Ontario, Canada.
On 7th February 2016, as announced by the Company on 10th February 2016, Landore entered into an option agreement with Ardiden, pursuant to which Ardiden had the right to purchase Landore's 100% interest in Root Lake.
The option agreement provided that Ardiden could purchase Landore's interest in Root Lake on the following terms:
- a non-refundable deposit of C$50,000 payable to Landore upon the date of execution of the option agreement, payment of which has been received by the Company;
Upon Completion, scheduled for 26th July 2016:
- C$150,000 cash payable by Ardiden to Landore; and
- C$150,000 of ordinary shares of the Optionee, such ordinary shares to be: (i) issued by Ardiden to Landore, and (ii) issued at the 20-day VWAP prior to Ardiden's announcement dated 10th February 2016 (such VWAP to be calculated in accordance with the rules of the Australian Securities Exchange ("ASX"), excluding block trades) of Ardiden's ordinary shares; and
- The granting to Landore of a 3% net smelter royalty ("NSR") from minerals produced from Root Lake, to be effective at the Completion Date which will be evidenced by a customary royalty agreement. The Royalty Agreement shall include the right for Ardiden to purchase 50% of the Royalty (i.e. half of the 3%) from Landore for a payment of C$1,000,000.00.
Ardiden Limited is an Australian mineral exploration company with mineral assets/options in Canada. More information about Ardiden Limited can be found on Ardiden's website: www.ardiden.com.au
Root Lake Lithium, a non-core asset, is 100% owned by Landore Resources Canada Inc, which is in turn is 100% owned by Landore Resources Limited.
The cash consideration received by the Company from the option agreement will be applied towards its working capital requirements
Michele Tuomi, (P.Geo., BSc. Geology), Director/VP Exploration of Landore Resources Canada Inc. and a Qualified Person as defined in the Canadian National Instrument 43-101, has reviewed and verified all scientific or technical mining disclosure contained in this announcement.
About Landore Resources
Landore Resources is an exploration company that seeks to grow shareholder value through the acquisition, exploration and development of precious and base metal projects in eastern Canada. The Company is primarily focused on the development of the Junior Lake Gold and Nickel Projects. Landore Resources has mineral rights to 6 properties in eastern Canada. The Company is headquartered in Guernsey with an exploration office located in Thunder Bay, Ontario, Canada.
SOURCE Landore Resources Limited
For further information: Bill Humphries, Chief Executive Officer, Tel: 07734 681262; Richard Prickett, Finance Director, Tel: 07775 651421; Landore Resources Limited, www.landore.com; James Spinney / Jack Botros, Strand Hanson Limited, Nominated Advisor and Broker, Tel: 020 7409 3494