LONDON, June 10, 2016 /CNW/ - Landore Resources (AIM: LND) is pleased to announce it has raised gross proceeds of approximately C$2.259 million (approximately £1.221 million) through a subscription (the "Subscription") of 71,843,000 new ordinary shares of 1p each in the Company (the "New Ordinary Shares") at a price of 1.7 pence per New Ordinary Share (the "Issue Price").
The Issue Price represents a premium of approximately 1.5 per cent. to the closing middle market price of 1.675 pence per ordinary share on 9 June 2016, being the last trading day prior to this announcement and the New Ordinary Shares represent approximately 10.3 per cent. of the enlarged issued share capital.
The net proceeds of the Subscription will be used by the Company to finance working capital and exploration expenditure on the Junior Lake BAM East Gold prospect.
Changes in Directors' disclosable interests pursuant to the Subscription are as set out below.
|
Director |
New Ordinary |
Shareholding |
Percentage |
|||||
|
William Humphries |
7,400,000 |
57,314,119 |
8.19 |
|||||
|
Richard Prickett |
1,188,977 |
11,144,876 |
1.59 |
|||||
|
Helen Green |
590,000 |
1,617,583 |
0.23 |
Commenting on today's announcement, Bill Humphries, Chief Executive of Landore Resources, said:
"We are delighted with the strong support our shareholders continue to provide through this latest fund raise, which enables our operations team to continue the drilling campaign on the exciting new BAM East Gold discovery on our highly prospective Junior Lake Property. Drilling is expected to recommence on 30 June with results and news flow expected during August."
The accompanying investor presentation used for the Subscription is available on the Company's website: www.landore.com
Further details on the Subscription
The Subscription is 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 of 1p each ("Ordinary Shares"). Application will be made to the London Stock Exchange for Admission. It is expected that Admission of the New Ordinary Shares will become effective and that dealings in such New Ordinary Shares will commence at 8.00 a.m. on 14 June 2016. Following Admission of the New Ordinary Shares the Company's issued share capital will consist of 700,046,825 Ordinary Shares with voting rights. Landore Resources does not hold any Ordinary Shares in treasury.
The aforementioned figure of 700,046,825 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 certain of the Directors and certain substantial shareholders in the Subscription is deemed to be a related party transaction under the AIM Rules. Accordingly, Charles Wilkinson, the independent Director, confirms that, having consulted with Strand Hanson Limited, the Company's nominated adviser, he considers that their participation in the Subscription is fair and reasonable insofar as the Company's shareholders are concerned.
SOURCE Landore Resources Limited
