Option Payment

RNS Number : 3331Y

Landore Resources Limited

13 January 2022

 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014

LANDORE RESOURCES LIMITED

(AIM Ticker: LND.L)

OPTION PAYMENT
MIMINISKA LAKE AND KEEZHIK PROPERTY

Landore Resources Limited (AIM: LND) ("Landore Resources" or "the Company") is pleased to confirm that following the granting of an option to Lithoquest Resources Inc. (TSX.V - LDI) (Lithoquest) (the "Option") to purchase Landore's 100% interest in the Miminiska Lake and Keezhik Lake properties in the Thunder Bay Mining district, Northern Ontario (together, the "Property"), the Company has received CAN$250,000 and new common shares in Lithoquest to the value of CAN$400,000.  

Under the terms of the Option agreement, further details of which are set out in the notification released by the Company on 10 May 2021, Lithoquest can acquire a 100% interest in the Property by making staged payments to Landore totalling CAN$1,375,000 in cash ("Cash Payment") and an additional CAN$2,625,000 either in cash or by issuing Landore with new common shares in Lithoquest ("Convertible Cash Payment"). Pursuant to the Option agreement, Landore has now received a total of CAN$375,000 with the remaining payments due in accordance with the schedule below:

· A Cash Payment of CAN$100,000 within ten business days of the "Effective Date" 6^th July 2021; Received

· A Cash Payment of CAN$250,000 and a Convertible Cash Payment of CAN$400,000 within six months of the Effective Date; Received

· A Cash Payment of CAN$250,000 and a Convertible Cash Payment of CAN$500,000 within twelve months of the Effective Date;

· A Cash Payment of CAN$250,000 and a Convertible Cash Payment of CAN$750,000 within 18 months of the Effective Date; and

· A Cash Payment of CAN$500,000 and a Convertible Cash Payment of CAN$1,000,000 within 24 months of the Effective Date.

Lithoquest has exclusive discretion to determine if each tranche of the Convertible Cash Payments is settled in cash or in Lithoquest shares.

In addition to the Cash Payment and the Convertible Cash Payment, following exercise of the Option, Landore shall be entitled to receive a 2% net smelter returns royalty ("NSR") from the Property. Lithoquest retains the right to reduce the NSR to 1% by paying Landore the sum of CAN$1,000,000 in cash.

Further information on the property is available on Landore's website www.landore.com .

The cash consideration received by the Company pursuant to the Option agreement will be applied towards Landore's working capital requirements.

ENDS

For more information, please contact:

Landore Resources Limited
Bill Humphries, Chief Executive Officer	Tel: [phone]
Glenn Featherby, Finance Director	Tel: [phone]
Cenkos Securities (Nominated Advisor and Broker)
Derrick Lee / Peter Lynch	Tel: [phone]

 

END

 

 

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