Landore Resources (AIM: LND) plans to raise approximately £1.2 million through the placing of 11.2 million shares at 11p each and has earmarked then proceeds for financing working capital and exploration expenditure.
Landore’s chairman William Humphries intends to participate in the placing with a subscription for 2 million shares. Upon completion, Humphries will own a total of 17.1 million shares, which represents 8.53% of the company’s enlarged share capital.
Admission of the new shares to London’s AIM market is expected to take place on 13 April 2010.
Last month, Landore reported positive results from independent test work at its key asset, the Junior Lake property in Ontario. Landore said that an independent technical study at Junior Lake’s Lamaune iron prospect has identified an exploration target of 545Mt (million tonnes) at an average grade of 29% Fe (iron). Test work results showed a grade of 68% ore concentrate with what the company called acceptable levels of impurities could be achieved.
The presence of a large magnetite iron deposit at the western end of the Junior Lake property was reported in October 2008. Further exploration work in 2009 together with additional drilling and trenching indicated that the deposit could be of economical significance, which was followed by the initiation of independent studies to provide an estimate of the potential size and quality of the Lamaune iron deposit.
The independent study identified an exploration target of 545 Mt (million tonnes) at an average grade of 29% Fe at a cut-off grade of 20% Fe and to a depth of 300 metres and an exploration target of 297 Mt at an average grade of 36% Fe at a cut-off grade of 25% Fe and to a depth of 300 metres.
Further drilling will be required to define a mineral resource.
Besides the Lamaune iron deposit, Junior Lake hosts the B4-7 nickel deposit, the VW Nickel deposit, the BAM zone gold occurrence, the recently discovered Lamaune gold prospect and other prospective mineral occurrences.
Disclosure: The author holds no positions in the company