LONDON, Sept. 13, 2012 /CNW/ - Landore Resources Limited ("Landore" or the "Company") (AIM: LND) the Canadian mining explorer, today announces that it has agreed a subscription of 52,300,000 new ordinary shares of 1p each in the Company ("Subscription Shares") at a price of 5p per Subscription Share (the "Subscription") to raise £2.615 million before expenses. The proceeds from the Subscription will be used to finance working capital, in addition to exploration and drilling expenditures on the nickel deposits at the Junior Lake project in the Province of Ontario, Canada (the "Junior Lake Project"). The focus for the drilling will be on the western extension of the B4-7 deposit on the Junior Lake Project, known as the Scorpion Zone.
Panmure Gordon assisted the Company with the Subscription and has introduced new institutional investors.
The Subscription is conditional on admission of the Subscription Shares to trading on AIM. Changes in discloseable interests are as set out below.
|Director|| Subscription Shares
| Percentage of enlarged
issued share capital
| William Humphries
The Subscription Shares will represent approximately 15.1% of the enlarged issued share capital of the Company. The number of ordinary shares in issue following the Subscription, and the total number of voting rights, will be 346,623,825. The Subscription Shares will rank pari passu with existing ordinary shares of 1p each in the Company. Application will be made for admission of the Subscription Shares to trading on AIM, and is expected to take place on 18 September 2012.
The participation of certain of the Directors in the Subscription is deemed to be a related party transaction under the AIM Rules. The Directors consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that the terms of the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.
About Landore Resources Ltd.
Landore Resources Ltd. 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, anticipated to enter into pre-feasibility stage Q1 2013. Landore Resources has mineral rights to 5 properties in eastern Canada. The Company is headquartered in London, with an exploration office located in Thunder Bay, Ontario, Canada.
Landore Resources is listed on the AIM market of the London Stock Exchange under the symbol LND. For more information, visit www.landore.com.
SOURCE: Landore Resources Limited
For further information:
Bill Humphries / Richard Prickett
Landore Resources Limited
Tel: 07734 681262
Tel: 07775 651421
Adam Pollock / Katherine Roe
Panmure Gordon & Co.
Broker to the Placing
Tel: 020 7886 2500
Angela Hallett / James Spinney
Strand Hanson Limited
Tel: 020 7409 3494
Tel: 07831 381201