Landore to raise EUR 1 million to advance nickel and iron ore
Saturday, 31 Oct 2009
Proactive Investors reported that Landore Resources Limited is placing 7.86 million new shares at 14 pence a share to raise approximately EUR 1.1 million before expenses and is planning to use the money to finance working capital and exploration expenditure.
The placing shares will represent 4.1% of the enlarged issued share capital. The group flagged the need to raise additional funds in the Q4 to continue further exploration activities when it reported interim results in mid September 2009 that were in line with company expectations. The group narrowed its pretax loss in the 6 months to June 30th 2009 to EUR 2.01 million from EUR 2.44 million per year earlier while exploration costs fell to EUR 1.4 million from EUR 1.61 million.
The company primary focus is firmly set on its nickel and iron ore projects at Junior Lake, Ontario, Canada. However, it still holds onto several other assets within its portfolio including a lithium project in Canada’s Red Lake Mining District which is better known for its underground gold mines.
Lithium is a hot topic however and the Root Lake Property, 100% owned by Landore contains a historic resource of 2.297 million tonnes grading 1.3% lithium not compliant to Canadian National Instrument 43-101. The lithium resource was defined over a strike of 500 meters and widths up to 19 meters.
In recent months, a plethora of Canadian based exploration juniors have turned their attention to lithium as investor interest increases in the metal. Lithium is used in a number of applications but it is the forecasted demand from rechargeable batteries for electric or hybrid cars that has speculators salivating about the potential future price of Lithium.
