LONDON, United Kingdom, Feb. 10, 2016 /CNW/ - Landore Resources Limited (AIM:LND) ("Landore Resources" or "the Company") today announces it has entered into an option agreement to sell its Root Lake Lithium Property ("Root Lake"), located in north western Ontario, Canada.
Landore has entered into an option agreement with Ardiden Ltd ("Ardiden"), pursuant to which Ardiden has the right to purchase Landore's 100% interest in Root Lake
The option agreement provides that Ardiden can 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;
and if the Option is exercised:
- C$150,000 cash payable by Ardiden to Landore on the Completion Date; and
- C$150,000 of ordinary shares of the Optionee, such ordinary shares to be: (i) issued by Ardiden to Landore on the Completion Date, and (ii) issued at the 20-day VWAP (such VWAP to be calculated in accordance with the rules of the Australian Securities Exchange, the "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 the Root Lake property, 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.
The Completion Date, as defined in the option agreement, shall be the earlier of a) 20 business days after the completion of the Due Diligence Period (150 days from the signing date of the option agreement); or (b) July 31, 2016.
Ardiden reserves the right to withdraw from the option agreement at any time. Landore will retain 100% of the Root Lake rights should Ardiden fail to complete any requirements of the option agreement.
Ardiden Limited is an Australian mineral exploration company with mineral assets/options in Canada, and has recently started consolidating its Lithium interests with its option to purchase the Seymour Lake Lithium project located approximately 45 kilometres west of Landore's Junior Lake project, as well as the above option to purchase Landore's Root Lake Lithium property. 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. In Landore's financial statements as at 30th June 2015, Root Lake had a book value of nil, and in the year ended 31 December 2014 there was nil expenditure undertaken on exploration on the property.
The cash consideration received by the Company from the option agreement will be applied towards its working capital requirements.
Commenting on this option agreement, the CEO of Landore Resources, Bill Humphries, said:
We are pleased to pass on our Root Lake property to a dedicated lithium explorer whilst retaining an interest in the property through shares and an NSR, leaving Landore to remain focused on the development of its highly prospective Junior Lake Property.
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 Nickel Project. Landore Resources has mineral rights to 6 properties in eastern Canada. The Company is headquartered in London, UK, 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; Angela Hallett / James Spinney, Strand Hanson Limited, Nominated Advisor and Broker, Tel: 020 7409 3494