Landore Resources Limited ("Landore Resources" or the "Company") - Interim Results for the six months ended 30 June 2016

LONDON, Sept. 28, 2016 /CNW/ - Landore is pleased to announce its interim results for the six months ended 30 June 2016.

Copies of the Interim statement are available on the website, www.landore.com

MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE SIX MONTHS ENDED 30 JUNE 2016

General
The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2016 to 30 June 2016.  All amounts are stated in sterling.

Overview
Landore Resources Limited ("Landore Resources" or the "Company") is quoted on the AIM market of the London Stock Exchange, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations
The financial results for the six months to 30 June 2016 show a loss of £732,975 (2015: loss £1,180,977). These results were in line with expectations, substantial savings have been made in relation to administration costs which included a non-cash charge of £245,864 relating to the grant of share options.  Exploration costs were £250,108 (2015: £466,518).

During the period under review £1,228,831 (2015: £nil) was raised from the issue of shares. In addition the sale of the Root Lake project, which completed on 11 July 2016, has raised a total of approximately C$330,000 (approximately £196,000).

As a result, the Group has been able to fund and make plans for follow up drilling in October 2016, further details are set out below.

Operations
The focus in the first half of 2016 has been almost entirely focused on the BAM East Gold prospect on the Company's Junior Lake Property in Ontario, Canada ("BAM East Gold Prospect").

The Junior Lake property:
The Junior Lake Property, 100% owned by Landore Resources, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to the B4-7 Nickel-Copper-Cobalt-PGEs resource plus the Exploration Target and the Alpha Zone, the VW Nickel resource and numerous other highly prospective mineral occurrences including the BAM gold zone and the newly discovered BAM East Gold Prospect.

BAM East Gold Prospect:
This new gold prospect is located approximately midway along a 2.7 kilometre long, east-southeast to west-northwest trending MaxMin geophysical anomaly ("MM-7"), at the western end of which is located the historical BAM gold zone discovered by Landore Resources in 2003.  MM-7 had not previously been drill tested.

On 14 March 2016 Landore Resources announced that drilling had intersected a significant new gold zone, since then a substantial amount of exploration and drilling has taken place.

Drilling results from the summer drilling campaign, completed on 5 September 2016, have reported wide zones of near surface gold mineralisation with drill-hole 0416-541 reporting 56.86 metres (m) at 1.60 grams/tonne gold (g/t) including 4.00m at 5.17g/t gold and drill-hole 0416-535 reporting 53.5 m at 1.38g/t including 9m at 4.74g/t and 1m at 30.6g/t gold.

The drilling has successfully extended the BAM East Gold Prospect for a distance of 500 metres along strike from 2200E to 2700E and to a vertical depth of 150 metres. The prospect remains open along strike to the east and west and down dip. 

Full details of the drilling results are set out in the press releases displayed on the Company's website, www.landore.com.

In addition to the drilling a trenching and channel sampling programme has been completed along MM-7 and along the parallel geophysical anomaly ("MM-18") located approximately 200 metres to the North of MM-7. Results from the sampling are currently being received and collated and will be released when completed.

BAM East gold mineralisation is a typical shear-hosted gold-bearing system in an Archaean greenstone belt. Findings from exploration drilling on the BAM East Gold Prospect has revealed a lithological sequence consisting of leucogabbro to the south, metasedimentary rocks in the central portion, to mafic volcanics to the north. All lithological units have been subjected to variable shearing and deformation, markedly the metasedimentary unit.

The gold mineralisation revealed to-date is predominantly contained in the metasediments, with some gold mineralisation occurring in the leucogabbro rocks. Visible gold occurs within or near quartz veinlets which are controlled by a shear system.

Planned Works:
Landore Resources is planning a follow-up drilling programme, scheduled to commence in early October, to extend the new gold zone down dip and along strike to the east and west and to obtain material for metallurgical testing.

Consulting Engineers RPA Inc. ("RPA") of Toronto, Canada, have been retained by Landore Resources with the view of completing an initial Mineral Resource estimate on the Bam East Gold Prospect.

Lithium
Landore Resources is currently reviewing its lithium prospects on the highly prospective Junior Lake Property including the historic Despard pegmatite, the Swole Lake pegmatite and the Tape Lake pegmatites both of which were discovered by Landore.

In addition the Root Lake project was sold during the period to Ardiden, an Australian Lithium explorer. Landore Resources received C$200,000 (approximately £117,500) consideration plus approximately 7.5 million Ardiden shares which have been sold raising a further AUD134,261 ( approximately £79,000). Landore Resources has been granted a 3% net smelter royalty from minerals produced from Root Lake.

As set out above, the cash proceeds from this disposal have enabled Landore Resources to plan and fund its October drilling programme.

For further information on Landore Resources and its projects please visit the website, www.landore.com.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2016
















Group


Group




Six months ended


Six months ended




30 June 2016


30 June 2015


Notes


£


£







Exploration costs

2


(250,108)


(466,518)

Other income



26,182


-

Administrative expenses



(508,340)


(715,773)







Operating loss



(732,266)


(1,182,291)







Finance income



-


1,314

Interest payable



(709)


-







Loss before income tax



(732,975)


(1,180,977)







Income tax expense



-


-







Loss for the period



(732,975)


(1,180,977)

 

Other comprehensive (loss)/income:






Exchange difference on translating foreign






operations



(10,837)


233,520

Other comprehensive (loss)/income for the year






 net of tax



(10,837)


233,520







Total comprehensive loss for the period



(743,812)


(947,547)







Loss attributable to:






Equity holders of the Company



(732,975)


(1,180,977)

 

Total comprehensive loss attributable to:






Equity holders of the Company



(743,812)


(947,457)







Loss per share attributable to the






equity holders of the Company during the year












- basic & diluted

3


(£0.001)


(£0.002)







 

The Group's operating loss relates to continuing operations.

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2016






























Share
capital
£


Share
premium
£


Share
options
£


Warrants
£


Retained
earnings
£


Cumulative
translation
reserve
£


Total
£

Balance at
1 January 2015

5,174,838


28,084,421


858,018


 

33,691


(32,839,649)


(308,851)


1,002,468

Loss for the year

-


-


-


-


(1,180,977)


-


1,180,977

Other comprehensive losses in
the year

-


-


-


-


-


233,520


233,520

Issue of ordinary share capital

-


-


-


-


-


-


-

Issue costs

-


-


-


-


-


-


-

Share option adjustment

-


-


-


-


-


-


-

Balance at
30 June 2015

5,174,838


28,084,421


858,019


33,690


(34,020,626)


(75,331)


55,011















Balance at
1 January 2016

6,282,038


27,627,990


858,019


33,690


(34,374,928)


(305,470)


121,339

Loss for the year

-


-


-


-


(732,975)


-


(732,975)

Other comprehensive gains in
the year

-


-


-


-


-


(10,837)


(10,837)

Issue of ordinary share capital

725,929


502,901


-


-


-


-


1,228,830

Change in nominal share value

28,130,891


(28,130,891)










-

Share options issued

-


-


245,864


-


-


-


245,864















Balance at
30 June 2016

35,138,858


-


1,103,883


33,690


(35,107,903)


(316,307)


852,221

 

The accounting policies and notes on pages 8 and 9 form part of these financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2016













Group

Group

Group



As at

As at

 As at



30 June 2016

30 June 2015

31 December 2015


Notes

£

£

£

Assets










Non current assets





Property, plant and equipment


35,480

43,733

35,782

Investments


-

-

-








35,480

43,733

35,782

Current assets





Trade and other receivables            


19,070

19,780

37,346

Cash and cash equivalents


944,544

208,304

368,475








963,614

228,084

405,821






Total assets


999,094

271,817

441,603






Equity










Capital and reserves attributable to
the Company's equity holders





Share capital

4

35,138,858

5,174,838

6,282,038

Share premium

4

-

28,084,421

27,627,990

Share options reserve


1,103,883

858,019

858,019

Warrants reserve


33,690

33,690

33,690

Retained earnings

5

(35,107,903)

(34,020,626)

(34,374,928)

Cumulative translation adjustment


(316,307)

(75,331)

(305,470)






Total equity


852,221

55,011

121,339






Liabilities










Non current liabilities





Income tax liabilities


-

-

-



-

-

-






Current liabilities





Trade and other payables                          


112,536

185,904

291,038

Income tax liabilities


34,337

30,901

29,226



146,873

216,806

320,264











Total liabilities


146,873

216,806

320,264






Total equity and liabilities


999,094

271,817

441,603






 

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2016










Group
Six months
ended
30 June 2016
£


Group
Six months
ended
30 June 2015
£

Cash flows from operating activities




Operating loss

(732,975)


(1,180,977)

Finance income

-


1,314

Depreciation of tangible fixed assets

6,002


6,096

Foreign exchange (loss)/gain on non-cash items

(12,940)


236,831

Share option charge

245,864


-

Decrease in receivables

21,636


6,739

(Decrease)/Increase in payables

(198,624)


67,215

Net cash outflow from operating activities

(671,037)


(862,782)

Cash flows from investing activities




Purchase of property, plant and equipment

-


-


-


-

Cash flows from financing activities




Issue of ordinary share capital

1,228,830


-

Issue costs

-


-

Net cash inflow from financing activities

1,228,830


-





Net increase/(decrease) in cash and cash equivalents

557,793


(862,782)

Cash and cash equivalents at beginning of period

368,475


1,072,249

Exchange gain/(loss) on cash and cash equivalents

18,276


(1,163)

Cash and cash equivalents at end of period

944,544


208,304

 

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2016

1  Basis of accounting and accounting policies

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (September 2016).  The Directors have elected not to apply IAS34 Interim Financial Reporting.

The 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 annual accounts to 31 December 2015.

2  Exploration expenditure and mineral properties           





Net


Accumulated



1 January


Expenditure


expenditure



2016


in period


30 June 2016



£


£


£








Junior Lake/Lamaune Lake


16,296,167


243,875


16,540,042

Miminiska Lake


1,519,976


1,795


1,521,770

Lessard


80,327


209


80,536

Frond Lake


61,558


1,016


62,574

Wottam


696,965


-


696,965

Other/including Swole Lake
and West Graham


65,999


3,213


69,212










18,720,992


250,108


18,971,099

 

Mineral properties at 30 June 2016 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 in the period has been charged to the income statement in accordance with the group 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 634,924,131 (2015: 517,483,825).

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.

4  Share capital



30 June


1 January



2016


2016



£


£

Issued:

700,488,001 (2015: 628,203,825) ordinary shares at nil par value
(2015: £0.01 each)


35,138,858


6,282,037

 

On 17 June 2016, 71,843,000 ordinary shares were issued at a price £0.017 each as part of a share subscription raising £1,228,831.

A further 441,176 ordinary shares were issued on 27 June 2016 at £0.017 per share in settlement of a payable of £7,500.

During the period, the par value of ordinary shares was redenominated from £0.01 per share to nil. 

Following the redenomination, all amounts received upon issue of shares, net of issue expenses or commissions, have been recognised as share capital in accordance with applicable law in Guernsey.



Share


Share



capital 


premium



2016


2016



£


£






At 1 January 2016


6,282,038


27,627,990






Ordinary shares issued


725,929


502,901






Redenomination of par value                                                 


28,130,891


(28,130,891)











At 30 June 2016


35,138,858


-

 

5  Profit and loss reserve




£



At 1 January 2016

(34,374,928)

Loss for the period

(732,975)



At 30 June 2016                                                                                                               

(35,107,903)

 

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


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