REG - Landore Resources Ld - Final Results and Notice of AGM
17/06/2024 07:00
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RNS Number : 5743S Landore Resources Limited 17 June 2024
17 June 2024
Landore Resources Limited
("Landore Resources" or the "Company")
Final Results for the Year Ended 31 December 2023
and Notice of Annual General Meeting
The Board of Landore Resources (AIM: LND) is pleased to announce the Company's
audited final results for the year to 31 December 2023.
The Company's forthcoming Annual General Meeting ("AGM") is to be held at La
Tonnelle House, Les Banques, St Sampson, Guernsey, GY1 3HS at 12.30 p.m. on 8
July 2024.
The full 2023 Annual Report incorporating the formal Notice of AGM will
shortly be made available on the Company's website at: www.landore.com
(http://www.landore.com/) and posted to shareholders.
For further information, please contact:
Landore Resources Limited
Glenn Featherby (Interim CEO)
Tel: + 44 7730420318
Strand Hanson Limited (Nominated Adviser and Joint Broker)
James Dance/Matthew Chandler/Robert
Collins
Tel: 020 74093494
Novum Securities Limited (Joint Broker)
Jon Bellis/Colin Rowbury
Tel: 020 73999402
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Key Extracts from the Company's 2023 Annual Report are set out below:
Interim Chief Executive Officer's Statement
I am pleased to present the 2023 Annual Report and consolidated financial
statements for Landore Resources Limited ("Landore Resources" or the "Company"
and, together with its subsidiaries, the "Group").
2023 was a difficult year for the Group with the junior gold sector continuing
to experience very depressed and challenging market conditions. Our
exploration activities during the year were minimal due to funding constraints
and focused on the Junior Lake Property comprising soil sampling programmes.
Corporate review
In June 2023, further to the retirement of our former CEO, it was announced
that a new CEO had been appointed and that Landore Resources Limited was
pursuing a proposed dual listing on the TSX Venture Exchange (the "TSX-V") in
Canada (the "Dual Listing"). In connection with such process, a Canadian based
independent non-executive director was also appointed in early November 2023
prior to the Company launching a proposed private placement to potentially
raise up to C$5m gross to satisfy a further key condition precedent to
securing exchange approval for the Dual Listing. This proposed significant
capital raise was regrettably unsuccessful and, as a result, in January 2024
the Dual Listing was put on hold. The new CEO and non-executive director
consequently resigned in order to reduce costs and preserve our remaining cash
reserves and I assumed the role of Interim CEO.
Financial Results
For the year ended 31 December 2023, the Group incurred a loss after tax of
£1,497,453 (2022: £1,860,585). In June 2023, financing was obtained via a
placing to raise £600,000 before expenses at a price of 9p per share arranged
by the Company's Joint Broker, Novum Securities Limited ("Novum"). Additional
funding was secured in October 2023 from the sale by the Company's principal
subsidiary, Landore Resources Canada Inc., ("Landore"), of certain Lithium
prospects, located within its Junior Lake Property, to ASX-listed Green
Technology Metals Limited ("Greentech") for, inter alia, C$1m in cash and
1,628,624 new ordinary shares in Greentech.
Post Year End Events
In January 2024, the Company raised a further sum of £600,000 gross by way of
a subscription and a placing at 2.4p per share arranged by Novum.
On 8 February 2024, the Company announced a further amendment to the
pre-existing option agreement between Storm Exploration Inc. ("Storm", a TSX-V
company formerly named Lithoquest Resources Inc.) and Landore with respect to
100% of the Miminiska Lake and Keezhik Lake properties in the Thunder Bay
Mining district, Northern Ontario, involving, inter alia, a six month
extension to the scheduling of the remaining two Cash Payments and Convertible
Cash Payments due from Storm to on or before 24 May 2024 and 24 November 2024
respectively. On 28 May 2024, a further short extension to the first of these
payments was granted to 28 June 2024, on the back of Storm signing an
exploration agreement with the Eabametoong First Nation in respect of the
properties concerned, representing a key milestone to it progressing
exploration activities.
On 12 June 2024, the Company announced that it will be raising approximately
£3.68 million before expenses by way of a two tranche subscription for, in
aggregate, 153,470,334 new ordinary shares of nil par value each in the
capital of the Company at a price of 2.4p per share. The first tranche of
£1.92m will be subscribed for using the existing authority to issue shares
and the second tranche of approximately £1.76m is conditional on the Company
obtaining the requisite shareholder approvals in respect of the issue of such
shares at its forthcoming AGM. The fundraising was cornerstoned by a new
strategic investor, Luso Global Mining B.V. ("LGM"), a subsidiary of the
Portuguese quoted Mota-Engil SGPS S.A. (EGL: MOTA.LS), alongside two well
renowned and highly experienced natural resource investors.
Planned Works for remainder of 2024
Now that the Company is well funded, our focus will be on progressing our
flagship BAM Gold Project at the Junior Lake Property. The work to be
undertaken will include seeking to increase the size of the existing resource
and targeting high grade areas of the deposit as well as upgrading inferred
resources to indicated. A significant drilling programme is currently
expected to commence in July 2024.
Social and Environmental Responsibility
The Group continues to enjoy robust working relationships with the local First
Nations on whose land the Junior Lake Property is located. Maintaining close
working relationships with the First Nations and other local communities is
essential to the ongoing development of our BAM Gold Project and future
activities including the identification and evaluation of potential new
project opportunities.
Planned Board Changes
In conjunction with the latest substantial fundraising, it was announced that
Mr Alexander Shaw, Managing Director and CEO of LGM, a highly accomplished
geologist with over fifteen years' experience of global exploration and
production projects, will be joining the Company as CEO to spearhead the next
phase of the Group's growth and development from a significantly strengthened
position. Such appointment, targeted for 8 July 2024 following the Company's
forthcoming Annual General Meeting, remains subject to satisfactory completion
of our Nominated Adviser's requisite due diligence process and, in the
meantime, Mr Shaw will assume the role of CEO in a non-board capacity with
effect from 17 June 2024. At that point, I will assume the role of executive
director to assist with an orderly transfer of my CEO responsibilities before
moving to a non-executive position.
I would like to take this opportunity to thank all of our valued stakeholders
for their patience and support and believe that the Group is now well
positioned to unlock the considerable potential in its highly prospective
Junior Lake Property as we endeavour to generate long term value for our
shareholders.
Glenn Featherby
Interim Chief Executive Officer
14 June 2024
Operations Report
Introduction
Landore Resources Limited, through its 100 per cent. owned subsidiary Landore
Resources Canada Inc. ("Landore"), is actively engaged in mineral exploration
in Eastern Canada. Landore owns or has the mineral rights to three properties
in Eastern Canada including its highly prospective Junior Lake Property.
Additionally, through Landore's 100 per cent. owned subsidiary Brancote US,
the Group owns or has the mineral rights to a further eight properties for 99
claims in the State of Nevada in the US.
During 2023, all of Landore's exploration efforts were focussed on the Junior
Lake Property. A soil-till sampling programme was completed in the Felix Lake,
Lamaune Gold and Carrot Top Ni-Cu-Co- PGEs prospect areas to build on
Landore's extensive dataset of soil sampling results along the Junior Lake
shear zone. Soil sampling covering 16 kilometres from the Placer Dome Gold
prospect in the west, to east of the BAM Gold Deposit successfully confirmed
the presence of highly anomalous gold occurrences and trends on the Felix
prospect and south of Felix westwards into the Lamaune Gold area, identifying
direct drill targets.
Preparatory work is currently underway to follow up on the promising soil
results with the aim of expanding the BAM Gold Deposit to the west and east,
as well as further delineating strategic metals trends.
In Q1 2023, Landore entered into an option agreement with Green Technology
Metals Limited ("Greentech") affording Greentech the right to purchase an 80%
interest in certain tenements for 10,856 hectares containing Lithium prospects
within the Junior Lake Project. In Q4 2023 Landore subsequently executed a
sale and purchase agreement to dispose of its entire 100 per cent. interest in
the Lithium Claim Blocks concerned to Greentech.
Full details of the Group's projects, including maps and Canadian National
Instrument 43-101 (NI 43-101) resource reports can be viewed on the Group's
website at: www.landore.com (http://www.landore.com) .
JUNIOR LAKE PROPERTY
The Junior Lake Property, 100 per cent. owned by Landore, is located in the
province of Ontario, Canada, approximately 235 kilometres north-northeast of
Thunder Bay. It is host to precious and battery metals deposits, notably the
BAM Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit with adjacent
Alpha PGEs zone and the VW Nickel Deposit. Junior Lake also contains numerous
other highly prospective mineral occurrences.
Junior Lake Property
The Junior Lake Property is comprised of the Junior Lake claim group and the
immediately adjacent claim group of Lamaune Iron Inc. ("Lamaune Iron"), a
subsidiary company of Landore (90.2% ownership).
Landore's Junior Lake Property including the Lamaune claim group consists of
727 staked mineral claims and six mining leases, all together totaling
approximately 22,037 ha. The property extends for 31 kilometres across highly
prospective Archean greenstone belt.
Regional deposits and prospects along airborne electromagnetic anomalies
Exploration - Soil Sampling
Gold plus Strategic Metals (Nickel, Copper, Cobalt, PGEs)
During summer/autumn 2023 soil sampling was conducted on the Junior Lake
Property aimed at infilling and extending the 2019 to 2022 soil sampling
programmes. A total of 834 samples (inclusive of QAQC samples) were collected
within the Grassy Pond/Felix Lake and Lamaune areas along strike to the east
and west from the existing BAM Gold Project confirming the presence of
widespread anomalous gold and multiple gold trends. To date, 17.5 kilometres
along the Junior Lake shear zone from the Placer Dome Gold prospect in the
west to east of the BAM Gold Deposit has now been covered by extensive soil
sampling. Soil sampling consisted of collection of samples at the B horizon at
a nominal spacing of 25 metres.
Lamaune Gold Grid
604 samples were taken in the area around and between the Lamaune Gold
Prospect and North Lamaune Lake. The soil sampling defined several anomalous
trends over the 5 kilometre strike length from the Lamaune Gold Prospect to
North Lamaune Lake, site of previous work by Placer Dome Gold. Much of the
area is underexplored.
Grassy Pond / Felix Lake Area
140 samples were taken in the Grassy Pond / Felix Lake area located to the
immediate west and along strike of the BAM Gold Deposit. Sampling extended
existing lines and, using wide spaced lines, confirmed continuous anomalies in
the southern survey area approximately 1 kilometre south of Grassy Pond and
Felix Lake. Results indicate multiple, continuous trends over a strike length
of over 4 kilometres from local grid line 1700W to 6000W.
Junior Lake East Grid Extensions
69 samples were taken on 3 additional lines east of the limits of the past
surveys. The 2023 sampling indicates that the BAM Au trend continues a minimum
of 200m to the east, with additional anomalies occurring for a further 400
metres.
In Q1 2024 an interpretation report was completed on Landore's soil sampling
programmes to-date. It concluded that the 2023 soil programme built and
expanded upon previous sampling programmes, further refining previous gold
exploration targets as well as identifying new targets across the property.
The report focused on refining previous gold exploration targets as well as
identifying new targets across the property. From these results four priority
areas have been detailed, all of which should be followed up with additional
work:
1. The eastern extension of the Junior Lake grid contains numerous
anomalies. Work has been performed in the area expanding the known BAM Gold
mineralisation. The soil sampling shows a continuous soil anomaly along the
interpreted BAM Gold mineralisation as well as possible additional anomalies
to the north and south. Recommendations in the area consist of:
a. Continued drilling along the defined trend.
b. Detailed prospecting along the possible anomalous trends to the north and
south.
c. Extension of the soil sampling grid to the east and to the south, to
follow along the anomalous values and guide exploration, concentrating along
the projected trends.
2. Follow up on the multiple anomalous trends between Juno Lake and Boras
Lake.
3. Infill soil sampling lines on the Lamaune Gold Grid to help trace and
define anomalies and detailed mapping and sampling over the most prospective
locations.
4. Expansion of the Felix Lake soil sampling to the south, infilling the
anomaly trends. Detailed mapping and sampling in the areas of the trends.
In addition, interpretation of the soil sampling with available diamond
drilling data has shown that soil anomalies do correlate with anomalous gold
mineralisation, and that the soil anomalies are localised indicating near-by
targets for further exploration.
Soil gold anomalies showing regional growth potential
In Landore's opinion, the Junior Lake Property has excellent potential to host
significant volumes of highly valuable strategic metals, including palladium
enriched sulphide nickel with associated cobalt and copper, the presence of
which has now been established through drilling for 11 kilometres from the
Carrot Top Zone in the west to the B4-7, Alpha zone and VW
Nickel-Copper-Cobalt-PGEs compliant deposits in the east, with the remaining
20 kilometres of the highly prospective greenstone-shear zone, transecting
Landore's Junior Lake Property, yet to be explored. Additionally, Landore
believes that this shear zone has tremendous prospectivity for a
multi-million-ounce gold deposit.
2024 Planned Works
Landore's plans for 2024 are to focus on advancing its highly prospective BAM
Gold project, targeting a two-million-ounce resource whilst also completing a
pre-feasibility study, concentrating on:
1. Advancing the existing Inferred resource estimate into the Indicated
resource category together with infilling the exploration targets to the
immediate east and west of the existing resource.
2. The underground potential at BAM as identified by Cube Consulting Pty
Ltd of Perth, Western Australia ("Cube") in its May 2022 Resource Upgrade and
presentation.
BAM GOLD DEPOSIT
The BAM Gold Deposit (formerly BAM East Gold Deposit) is located approximately
2 kilometres to the east of the B4-7 Deposit and 1 kilometre north of the VW
Deposit and is situated midway along an east-southeast to west-northwest
trending MaxMin geophysical anomaly (MM-7). This Archean-aged mesothermal
gold deposit, hosted in variably sheared and deformed lithological units,
consists of near-surface low grade gold with periodic intervals of
higher-grade gold.
The latest BAM Gold resource estimate and report, completed by Cube and
reported by Landore on 8 February 2022, increased the in-situ resource to:
49,231,000 tonnes (t) at 1.0 gram/tonne (g/t) for 1,496,000 ounces of gold
including 30,965,000t at 1.0g/t for 1,029,000 ounces of gold in the Indicated
Category and 18,266,000t at 0.8g/t for 467,000 ounces of gold in the Inferred
Category (compliant with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (NI 43-101)).
A revised Preliminary Economic Assessment ("PEA") subsequently reported by
Landore on 9 May 2022 considered the economics for exploiting resources inside
optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces of
gold using a long-term gold price of US$1,800. The project assumes the
construction of a 2.2 Mt per annum processing plant over four quarters
followed by a production period of 10.5 years.
The PEA indicates that the BAM Gold Project, at a gold price of US$1,800 per
ounce, could generate pre-tax and post-tax NPVS of, respectively, US$333.6
million and US$231.2 million and pre-tax and post-tax real IRRs of 87.4% and
66.7% respectively. The BAM Gold Project has an estimated after-tax simple pay
back of 1.25 years from the start of production or 2.25 years from the start
of the project.
This PEA, combined with the 50% resource increase reported in February 2022,
reaffirmed the potential profitability of the BAM Gold Project. The resource
has excellent growth potential remaining open at depth and along strike to the
east and west, all within established mining leases which cover more than 20
kilometres potential strike length.
BAM Gold Deposit, January 2022 Mineral Resource Update
The resource now extends 4,300 metres from grid line 200W to 4100E and remains
open down dip and along strike to the east and the west. In addition, soil
sampling has identified widespread gold mineralisation along strike to the
west for a further 12 kilometres.
The BAM Gold Deposit has the potential to be initially developed as a low
cost, bulk tonnage, open pit operation.
JUNIOR LAKE STRATEGIC METALS
The burgeoning demand for Strategic Metals has enhanced the attractiveness of
Landore's B4-7 and VW Deposits. The Junior Lake Ni-Cu-Co-PGEs deposits and
prospects are located along the southern margin of a major zoned gabbro
complex named the 'Grassy Pond Sill'. The Grassy Pond Sill is situated within
a shear zone along the highly prospective Archean greenstone belt traversing
the Junior Lake Property from east to west for approximately 31 kilometres.
This shear zone also hosts the BAM Gold Deposit along its northern margin.
B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT
No material work has been completed on the B4-7 since the discovery of the BAM
Gold Deposit in December 2015, as the Company has instead focussed its efforts
on the progression of the gold project.
The B4-7 resource estimate and report, completed by RPA Inc. ("RPA")
independent engineers of Toronto, Canada in January 2018, is compliant with
the requirements of NI 43-101. The resource, so far delineated over 900 metres
of strike and to a depth of 550 metres, remains open down plunge at depth and
along strike to the west.
Table 1-2 Mineral Resources for the B4-7 Nickel-Copper-Cobalt-PGE
Deposit and Alpha Zone - 1 December, 2017
Landore Resources Canada Inc. - Junior Lake Project
Deposit Tonnes Ni (%) Cu (%) Co (%) Pt (g/t) Pd (g/t) Au (g/t) NiEq (%)
Open Pit
Indicated Alpha 132,000 0.23 0.09 0.02 0.18 0.99 0.01 0.63
B4-7 1,640,000 0.62 0.41 0.05 0.14 0.55 0.03 1.20
Inferred - - - - - - - -
Underground
Indicated B4-7 1,520,000 0.65 0.45 0.06 0.12 0.48 0.03 1.25
Inferred B4-7 568,000 0.61 0.52 0.05 0.08 0.50 0.03 1.26
Total
Indicated 3,292,000 0.62 0.42 0.05 0.13 0.53 0.03 1.20
Inferred 568,000 0.61 0.52 0.05 0.08 0.5 0.03 1.26
Notes:
1. CIM (2014) definitions were followed for Mineral Resource
estimation and classification.
2. Mineral Resources were estimated using average long-term metal
prices (US$) of $8.00/lb nickel, $3.50/lb copper, $19.00/lb cobalt, $1,400/oz
platinum, $1,000/oz palladium, and $1,400/oz gold and an exchange rate
(C$/US$) of 1.25, and the NSR factors stated in the body of this report.
3. Open Pit Mineral Resources were reported within a resource pit
shell at an NSR cut-off value of $22/t. Underground Mineral Resources are
reported at an NSR cut-off value of $62/t.
4. Tonnage figures were rounded to three significant figures. Totals
may not add correctly due to rounding.
5. The Mineral Resource estimate used drill hole data available as of
16 December 2015.
6. The Mineral Resource estimate for the B4-7 Deposit were reported
using densities calculated from estimated nickel + cobalt grades. The
Mineral Resource estimate for the Alpha Zone were reported using densities
calculated from estimated nickel grades.
B4-7 Deposit - Open Pit, Underground Resource
The report also identified a new Exploration Target located immediately west
of the B4-7 Deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide
mineralisation of similar grade range to that which has been outlined to-date
(potential 18,000 to 24,000 tonnes of contained metal).
There is significant value in the B4-7 Deposit in its credit commodities, in
particular cobalt and palladium. The B4-7 2018 resource upgrade reported a
significant cobalt content credit of over 4.6 million pounds for the deposit
to date together with over 66,000 ounces of Palladium. However, the adjacent
Alpha Zone, which has only partially been included in the B4-7 resource, is
palladium/platinum rich with historic drilling reporting intersections of 1.5
metres at 10.15g/t Pd in drill hole 0415-507 and 20.15 metres at 1.54 g/t Pd.
in drill-hole 0414-503 including 0.72 metres at 12.85 g/t Pd.
VW NICKEL-COPPER-COBALT DEPOSIT
In the same January 2018 report, RPA determined the VW Deposit to contain
1,084,000 tonnes at 0.71% NiEq in the Indicated category and 180,000 tonnes at
0.68% NiEq in the Inferred category for a total of 8,920 tonnes of contained
metal.
Infrastructure
The city of Thunder Bay is located on the northern shore of Lake Superior and
is the main supply hub for the mining centres of northern Ontario including
Red Lake, Pickle Lake, and the Musselwhite gold mine. It has extensive port
facilities and an airport providing daily flights to major provincial cities,
as well as a rail line that provides access to both eastern and western North
American markets.
Access to Junior Lake from Thunder Bay is via a sealed highway for 235
kilometres to the town of Armstrong and then via a well-maintained forest
product unsealed road for 105 kilometres that runs to the property.
The Canadian National Railway runs parallel to the Junior Lake Property 13
kilometres to the south providing direct transport access to both the nickel
smelting centre of Sudbury and the port facilities at Thunder Bay. In
addition, Junior Lake has abundant water resources nearby.
Environmental Baseline Studies
WSP Inc. (formerly Golder Associates) of Sudbury, Ontario, have continued with
the Environmental Baseline Studies programme initiated on the mining leases
containing the BAM, B4-7 and VW Deposits in the winter of 2007. Water surface
monitoring of lakes and drainage tributaries within the vicinity of the
deposits have continued since 2011. The area of influence has recently been
expanded to include lakes and drainage further out from the leases. The
environmental and baseline studies are all pre-requisites for permitting
requirements for the potential future development of the BAM, B4-7 and VW
Deposits.
Mining Leases
A pre-requisite for the development of the BAM, B4-7 and VW Deposits is to
secure tenure over an area of land sufficiently large to provide for
development, mining, processing, infrastructure and buffer zones around the
mining areas and for future expansion. Landore has been granted three mining
leases ("Mining Leases"), which include mining and surface rights, over an
area encompassing the BAM, B4-7 and VW Deposits. The mining leases cover 23
existing exploration claims for a total area of 3,676 hectares and have been
granted for 21 years renewable for further terms of 21 years. Additionally, in
late 2019 Ontario's Ministry of Northern Development, Mines, Natural Resources
and Forestry granted the Company Mining Leases 109856 and 109857 encompassing
all of Lamaune Iron Inc.'s exploration claims over an area totalling
approximately 4,133 hectares.
The combined Landore and Lamaune Mining Leases cover a total of approximately
7,862 hectares and extend for 22 kilometres, encompassing all of Landore's
established mineral deposits and prospects. These include: the BAM Gold
Deposit; B4-7 Nickel-Copper-Cobalt-PGEs Deposit; VW Nickel-Copper Deposit (all
NI43-101 compliant); the Lamaune Gold Prospect; and the Lamaune Iron Deposit.
Within the Mining Leases, Landore has the right, subject to the provisions of
certain Acts and reservations, to:
- Sink shafts, excavations etc., for mining purposes.
- Construct dams, reservoirs, railways, etc., as needed.
- Erect buildings, machinery, furnaces, etc., as required and to treat
ores.
OTHER PROPERTIES
Landore has other non-core exploration properties which include grass roots
exploration and defined drill targets.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
Landore believes that a successful project is best achieved through
maintaining close working relationships with the First Nations and other local
communities. This social ideology is at the forefront of all of the Group's
exploration initiatives by establishing and maintaining co-operative
relationships with First Nations communities, hiring local personnel and using
local contractors and suppliers.
Careful attention is given to ensure that all exploration activity is
performed in an environmentally responsible manner and abides by all relevant
mining and environmental acts. Landore takes a conscientious role in all of
its operations and is aware of its social responsibility and its environmental
duty.
Michele Tuomi, P.Geo.
Director/VP Exploration, Landore Resources Canada Inc.
14 June 2024
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
Group Group
31 December 31 December
2023 2022
£ £
Exploration costs (679,153) (2,168,828)
Administrative expenses (2,092,039) (1,568,876)
Operating loss (2,771,192) (3,737,704)
Other income 1,551,591 2,321,838
Loss on non-current investments measured at fair value (172,358) (444,719)
Loss on disposal of non-current investments (105,671) -
Interest receivable & similar income 177 -
Loss before income tax (1,497,453) (1,860,585)
Income tax - -
Loss for the year (1,497,453) (1,860,585)
Other comprehensive income
Items that will subsequently be reclassified to profit or loss:
Exchange differences on translating foreign operations (37,591) 21,578
Other comprehensive income for the year net of tax (37,591) 21,578
Total comprehensive loss for year (1,535,044) (1,839,007)
Loss attributable to:
Equity holders of the Company (1,496,320) (1,859,788)
Non-controlling interests (1,133) (797)
Total comprehensive loss attributable to:
Equity holders of the Company (1,533,911) (1,838,210)
Non-controlling interests (1,133) (797)
Loss per share for losses attributable to the equity holders of the Company
during the year
- basic (0.01) (0.02)
- diluted (0.01) (0.02)
The Group's operating loss relates to continuing operations.
The above Consolidated Statement of Comprehensive Income should be read in
conjunction with the accompanying notes set out in the full 2023 Annual
Report.
Consolidated Statement of Financial Position
As at 31 December 2023
Group Group
At At
31December
31 December
2023 2022
£ £
Assets
Non-current assets
Property, plant and equipment 53,091 68,432
Investments 331,585 169,682
384,676 238,114
Current assets
Trade and other receivables 53,927 110,890
Cash and cash equivalents 564,682 1,235,528
618,609 1,346,418
Total assets 1,003,285 1,584,532
Equity
Capital and reserves attributable to the Company's equity holders
Share capital - nil par value 52,472,522 51,926,526
Share-based payment reserve 621,056 584,266
Accumulated deficit (52,622,365) (51,139,811)
Translation reserve (338,624) (301,033)
Total equity shareholders' funds 132,589 1,069,948
Non-controlling interests (6,831) (5,698)
Total equity 125,758 1,064,250
Liabilities
Current liabilities
Trade and other payables 877,527 520,282
Current income tax liabilities - -
877,527 520,282
Total liabilities 877,527 520,282
Total equity and liabilities 1,003,285 1,584,532
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes set out in the full 2023 Annual
Report.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Equity shareholders' funds
Share-based Accumulated Translation
Share capital Non-controlling
nil par value payment deficit reserve interest Total
£ £ £ £ £ £
Balance as at 1 January 2022 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
Issue of options - 16,914 - - - 16,914
Issue of ordinary share capital - nil par value - - -
1,746,927 - 1,746,927
Options exercised - (16,727) 16,727 - - -
Options lapsed - (339,381) 339,381 - - -
Warrants exercised - (20,664) 20,664 -
- -
Warrants lapsed - (35,285) 35,285 - - -
Total transactions with owners 412,057
1,746,927 (395,143) - - 1,763,841
Loss for the year - - (1,859,788) - (797) (1,860,585)
Exchange difference from translating - - -
foreign operations -
21,578 21,578
Total comprehensive loss for the year - - (1,859,788) 21,578 (797) (1,839,007)
Balance as at 31 December 2022 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
Balance as at 1 January 2023 51,926,526 584,266 (51,139,811) (301,033) (5,698) 1,064,250
Issue of options - 37,552 - - - 37,552
Issue of warrants - 13,004 - - - 13,004
Issue of ordinary share capital - nil par value 545,996 - - - - 545,996
Warrants lapsed - (13,766) 13,766 - - -
Total transactions with owners 545,996 36,790 13,766 - - 596,552
Loss for the year - - (1,496,320) - (1,133) (1,497,453)
Exchange difference from translating foreign operations - - - (37,591) - (37,591)
Total comprehensive loss for the year - - (1,496,320) (37,591) (1,133) (1,535,044)
Balance as at 31 December 2023 52,472,522 621,056 (52,622,365) (338,624) (6,831) 125,758
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes set out in the full 2023 Annual
Report.
Consolidated Statement of Cash Flows
For the year ended 31 December 2023
Group Group
31 December 31 December
2023 2022
£ £
Cash flows from operating activities
Operating loss (2,771,192) (3,737,705)
Other income and gains 1,379,233 1,877,119
Depreciation of tangible fixed assets 13,351 17,323
Share options issued 37,552 16,914
Loss on sale of investments (105,671) -
Foreign exchange loss on non-cash items (10,295) (17,108)
Non-cash option income (400,250) (309,578)
Decrease/(increase) in trade and other receivables 54,446 (32,651)
Increase in trade and other payables 368,393 337,888
Fair value loss on financial assets 172,358 444,719
Net cash used in operating activities (1,262,075) (1,403,079)
Cash flows from investing activities
Interest received 177 -
Proceeds from sale of investments 59,861 -
Net cash generated by investing activities 60,038 -
Cash flows from financing activities
Proceeds from issue of ordinary shares 600,000 1,746,927
Issue costs (41,000) -
Net cash generated by financing activities 559,000 1,746,927
(643,037) 343,848
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 1,235,528 875,658
Exchange (loss)/gain on cash and cash equivalents (27,809) 16,022
Cash and cash equivalents at the end of the year 564,682 1,235,528
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes set out in the 2023 Annual Report.
Additional Information
Publication of non-statutory accounts
The financial information for the year ended 31 December 2023 set out above
does not constitute statutory accounts.
Such information has been extracted from the Group's financial statements to
that date which carried an unqualified audit report and did not include any
reference to any matters to which the auditor drew attention by way of
emphasis.
Basis of preparation
The financial information for the year ended 31 December 2023 set out in this
announcement, has been:
i) compiled in accordance with EU-Adopted International
Financial Reporting Standards ("EU IFRSs"), however this announcement does not
contain sufficient information to comply with IFRSs. The EU IFRSs compliant
Consolidated Financial Statements are set out in the full Annual Report for
the year ended 31 December 2023; and
ii) prepared on the basis of the accounting policies as stated
in the Annual Report for the year ended 31 December 2023.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Interim
Chief Executive Officer's Statement and the principal risks and uncertainties
section of the Strategic Report. In addition, note 22 to the consolidated
financial statements includes the Group's objectives, policies and processes
for managing its capital; its financial risk management objectives; details of
its financial instruments; and its exposures to credit risk and liquidity
risk.
As at 31 December 2023, the Group had cash balances of £564,682. Since the
year end, the Group has announced that it raised £600,000 before expenses by
way of a placing and a subscription of 25,000,000 new ordinary shares of nil
par value each in the capital of the Company ("Ordinary Shares") at a price of
2.4 pence per share. The net proceeds of such fundraising were utilised for
general working capital purposes and to progress the Company's strategy of
focusing on the advancement of its flagship BAM Gold Project at the Junior
Lake Property in Northwestern Ontario.
On 12 June 2024, the Company announced that it had conditionally raised
approximately £3.68 million before expenses by way of a two tranche
subscription (the "Subscription") for, in aggregate 153,470,334 new Ordinary
Shares at a price of 2.4 pence per share (the "Subscription Shares"). The
Subscription is being cornerstoned by a new strategic investor, Luso Global
Mining B.V. ("LGM"), a wholly owned subsidiary of the Portuguese quoted
Mota-Engil SGPS S.A. (EGL: MOTA.LS).
The net proceeds of the Subscription will primarily be utilised for a drill
programme and to advance the Company's flagship BAM Gold Project at the Junior
Lake Property in Northwestern Ontario, as well as for the Group's general
working capital requirements. It will also facilitate the identification and
evaluation of potential new project opportunities to augment the Group's
existing portfolio.
In addition, Landore has a pre-existing option agreement in place with Storm
Exploration Inc. (a TSX-V company, formerly named Lithoquest Resources Inc.)
("Storm") over 100% of the Miminiska Lake and Keezhik Lake properties in the
Thunder Bay Mining district, Northern Ontario (the "Properties") (the "Option
Agreement").
In light of Storm's announcement of 23 May 2024 regarding its signing of an
Exploration Agreement with the Eabametoong First Nation in respect of, inter
alia, the Properties, which represents a significant milestone achievement to
collaboratively progressing exploration activities with the local community,
the Company agreed to extend the next scheduled Cash Payment of C$262,500 and
Convertible Cash Payment of C$525,000 from 24 May 2024 to on or before 28 June
2024.
Landore is currently scheduled to receive the final tranche from Storm on or
before 24 November 2024 comprising a cash payment of C$525,000 and a
convertible cash payment of C$787,500.
The Group currently holds 2,175,839 shares in Storm and 1,628,624 shares in
Green Technology Metals Limited listed on the ASX. The total value of these
shares as at 31 December 2023 was C$559,218.
Whilst the Group has reported a comprehensive loss after tax for the year
ended 31 December 2023 amounting to approximately £1.5m, the abovementioned
recent substantial Subscription and expected further receipts from Storm
together with the cash balances held at the year end, means that the Board is
satisfied that the Group has sufficient cash to meet its operational
requirements for a period of at least 12 months from the date of approval of
the consolidated financial statements.
The Group currently has no debt. Future development plans to grow the Group's
resources can be adjusted based on the Group's ability to raise additional
funds.
The consolidated financial statements have been prepared on a going concern
basis with a reasonable expectation that the Group has adequate resources to
continue in operational existence for a period of at least 12 months from the
date of approval of these consolidated financial statements.
Availability of Annual Report
The full Annual Report for the year ended 31 December 2023 incorporating the
Notice of the Annual General Meeting will shortly be made available on the
Company's website at: www.landore.com (http://www.landore.com/) and posted
to shareholders.
The forthcoming Annual General Meeting of Landore Resources Limited will be
held at La Tonnelle House, Les Banques, St Sampson, Guernsey, GY1 3HS on 8
July 2024 at 12.30 p.m.
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