TIDMLND
RNS Number : 9152C
Landore Resources Limited
24 June 2021
24 June 2021
Landore Resources Limited
("Landore Resources" or the "Company")
Final Results and Notice of AGM
The Board of Landore Resources (AIM: LND) is pleased to announce
its audited results for the year to 31 December 2020.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Tel: 07734 681262
Officer
Glenn Featherby, Finance Director Tel: 07730 420318
Cenkos Securities (Nominated Advisor
and Broker)
Derrick Lee / Peter Lynch Tel: 0131 220 9100
Chief Executive Officer's statement
I am pleased to present the 2020 Annual Report for Landore
Resources Limited ("Landore Resources" or the "Group").
2020 was a challenging year for the globe due to the onset of a
novel strain of coronavirus ("COVID-19") causing significant
disruption to the commencement of the Group's Canadian operations.
However, by mid-2020 Landore successfully resumed operations as per
Government COVID-19 guidelines.
During 2020 all of Landore Resources' exploration efforts were
focussed on the Junior Lake property with a 23,000 metre drilling
programme aimed at further expansion of the highly prospective BAM
Gold resource of 1,015,000 ounces of gold (reported by the Company
on 7th January 2020). In addition, Landore completed an extensive
exploration campaign westwards along strike for approximately 7
kilometres from the existing BAM Gold Project successfully
identifying widespread anomalous gold and multiple gold trends.
Financial Results
In the year ended 31 December 2020, the Group incurred a loss,
after tax, of GBP2,553,556 (2019: GBP2,145,920).
Operating expenses were in line with our budgets and
expectations. Details of funds generated during the year are set
out below.
In January 2020, the Group raised GBP225,000 by the issuance of
shares at a price of 0.7p per share.
In April 2020, the Group raised GBP260,000 by the issuance of
shares at a price of 0.675p per share.
In July 2020, the Group raised a further GBP2.8 million by the
issuance of shares at a price of 0.675p per share. Investors in
both the April 2020 and July 2020 issues received one warrant per
share purchased, as described in Note 16.
Share Consolidation
In August 2020, the Company announced a Consolidation of the
Company's shares with the number of issued ordinary shares of no
par value each in the Company ("Ordinary Shares") being reduced by
a factor of 20.
Post-year end events
In February 2021, the Group raised a further GBP3.5 million by
the issuance of shares at a price of 30p. The fundraising received
good support from new and existing investors. This will allow the
continued development of the identified BAM Gold Resource, the
completion of a further exploration programme
along strike to other known gold prospects and the commission of
a refreshed Preliminary Economic Assessment ("PEA") and Resource
Report.
The Group is funded for the current exploration programme and
has no debt. The Company will continue to raise further equity as
needed to carry out its development plans. Shareholders have been
very supportive of the Group's financing needs and the Directors
are confident of raising further funds as required.
The 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 and is host to the BAM
Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit and
numerous other highly prospective mineral occurrences.
The Junior Lake property together with the adjacent 90.2% owned
Lamaune Lake property extends for 31 kilometres across highly
prospective Archean greenstone belt and covers an area of 30,507
hectares.
BAM Gold Deposit: In October 2020, Landore commenced a 23,000
metre drilling programme aimed at further infilling and extending
the defined resource. To June 2021, a total of 17,070 metres had
been completed. Drilling has successfully intersected gold
mineralisation of similar widths and grade to the existing BAM Gold
Deposit with several instances of visible gold ("VG").
Intersections included bonanza grade gold mineralisation in drill
hole 0421-785 reporting 0.32 metres at 432.0 grams/tonne gold
(g/t). Further drilling is underway to establish strike extensions
to the east and west of the defined deposit.
The BAM Gold Deposit now extends over 3.5 kilometres from local
grid line 400E to 4100E remaining open to the east and west and
down dip.
The continued rapid growth of the BAM Gold Deposit together with
the possible future development of the other known gold prospects
along this highly prospective 31 kilometre long Archean greenstone
belt bodes well for the future of the Junior Lake Property hosting
a multi-million ounce gold deposit.
B4-7 Nickel-copper-cobalt-PGEs deposit: The burgeoning demand
for electric cars has increased demand for battery metals such as
nickel, cobalt and lithium. The Company is encouraged by the growth
in this sector and thus has initiated an in-house economic analysis
of its B4-7 deposit with the aim of its potential development. The
B4-7 deposit and Alpha Zone contains 3,292,000 tonnes at 1.20%
Nickel Equivalent (NiEq) in the Indicated category and 568,000
tonnes at 1.26% NiEq in the Inferred category for a total of 46,661
tonnes of contained metal.
Planned works for 2021 : At the conclusion of the 2020-2021
drilling programme the Company is planning to commission an updated
Mineral Resource Estimate ("MRE") and Preliminary Economic
Assessment ("PEA") on the BAM Gold Deposit.
Social and Environmental Responsibility : The Group continues to
enjoy solid working relationships with the local First Nations on
whose traditional lands our Junior Lake Property is located.
Landore believes that a successful project is best achieved through
maintaining close working relationships with First Nations and
other local communities.
On behalf of my fellow directors I wish to thank our
shareholders for their continued support together with Landore's
Management and Exploration team for their dedication and
perseverance in advancing the highly prospective Junior Lake
Property though this particularly challenging year.
William Humphries
Chief Executive Officer
23 June 2021
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.
In December 2020, Landore sold its 30 per cent interest in the
West Graham property located in the Sudbury Nickel Belt and has
retained a 1% net smelter returns royalty ("NSR") from the
Property. After the balance sheet date, the Miminiska / Keezhik
Lake property, was optioned to purchase subject to certain terms
and conditions. Landore will be entitled to receive a 2% NSR from
the Property subject to a buyback clause.
Landore through its 100 per cent owned subsidiary Brancote US,
owns or has the mineral rights to a further eight properties for 99
claims in the State of Nevada.
During 2020 all of Landore Resources' exploration efforts were
focussed on the Junior Lake property. Drilling was conducted to
further infill, extend and deepen the BAM Gold resource of
1,015,000 ounces of gold (reported by the Company on 7 January
2020), as well as soil sampling two kilometres east and west of the
defined deposit which has indicated widespread anomalous gold and
multiple gold trends.
Full details of the Group's projects, including maps, Canadian
National Instrument 43-101 (NI 43-101) resource reports,
geophysical and soil geochemistry surveys etc. can be viewed on the
Group's website, 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 and is host to the BAM
Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit and the
adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel
Deposit and numerous other highly prospective mineral
occurrences.
The Junior Lake property is comprised of the Junior Lake claim
group and the immediately adjacent claim group of Lamaune Iron Inc.
("Lamaune Iron"). In October 2017, Landore acquired a 90.2%
ownership of Lamaune Iron, which has become a subsidiary company of
Landore.
Landore's Junior Lake property including the Lamaune claim group
now consist of 1,158 staked mineral claims and six mining leases,
all together totalling approximately 30,507 ha. The property
extends for 31 kilometres across highly prospective Archean
greenstone belt.
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).
The latest BAM Gold resource estimate and report, completed by
Cube Consulting Pty Ltd ("Cube") of Perth, Western Australia and
reported by Landore 7(th) January 2020, increased the resource
to:
31,083,000 tonnes (t) at 1.02 grams/tonne (g/t) for 1,015,000
ounces of gold including 21,930,000t at 1.06g/t for 747,000 ounces
gold in the Indicated Category ( compliant with National Instrument
43-101 Standards of Disclosure for Mineral Projects (NI
43-101)).
Table 0 -- 1 BAM Gold Project In-Situ Mineral Resources In-situ
Mineral Resource - All Indicated and Inferred Resources (as at 30
December 2019)
Resource Material Au g/t Tonnes Grade Contained
Category Type cut off (kT) (g/t Metal
Au) (Oz Au)
Measured ALL >0.3 0 0 0
---------- ---------- ------- ------ ----------
Indicated ALL >0.3 21,930 1.06 747,000
---------- ---------- ------- ------ ----------
Inferred ALL >0.3 9,153 0.91 268,000
---------- ---------- ------- ------ ----------
Notes:
1 Effective date of 30 December 2019 .
2 Mineral Resources are estimated at a block cut-off
grade of 0.3 g/t Au.
3 Mineral Resources are estimated using a long-term gold
price of US$1,500 per ounce.
4 A minimum mining width of two metres was used.
5 Bulk densities for the main host rocks are 2.82 t/m(3)
, 2.84 t/m(3) , and 2.90 t/m(3) .
6 Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability.
7 Figures may not add up due to rounding
The BAM Gold Deposit was discovered in December 2015 while
drilling to test the geophysical target, MaxMin anomaly MM-7.
Mineralisation consisted of near-surface low grade gold with
periodic intervals of higher grade gold. Subsequent drilling has
grown the resource considerably, now extending over 3.5 kilometres
from local grid line 400E to 4100E remaining open to the east and
west and down dip. In addition, soil sampling conducted in 2019 and
2020 has identified widespread gold mineralisation along strike to
the west for a further 7 kilometres and 2 kilometres to the
east.
The BAM Gold Deposit is interpreted as an Archean-aged
mesothermal gold deposit. Findings from drilling to-date on the BAM
Gold Deposit have revealed a lithological sequence consisting of
leucogabbro and gabbro of the Grassy Pond Sill to the south,
metasedimentary rocks of the BAM
Sequence in the central portion, to mafic volcanics to the
north. All lithological units have been subjected to variable
shearing and deformation, markedly the metasedimentary unit.
The deposit consists of gold mineralisation that is hosted by
sheared and altered rocks of the Grassy Pond Sill and the BAM
Sequence. The gold mineralisation is commonly observed in drill
core to exist as visible gold that is hosted by very thin,
foliation-parallel quartz-rich veinlets, hosted by highly fissile
ultramafic sediments of the BAM Sequence, or by foliated rocks of
the Grassy Pond Sill.
The BAM Gold Deposit has the potential to be initially developed
as a low cost, bulk tonnage, open pit operation.
Fall Drill Campaign: In October 2020, Landore re-commenced
drilling aimed at further infilling and extending the defined
resource of 1,015,000 ounces of gold and to test the depth
potential of the previously delineated mineralisation.
The 2020/2021 drill campaign, currently in-progress, consists of
15,903 metres for 68 HQ diamond drill holes (0420-725 to 0421-792)
as at April 30 2021. Drilling successfully intersected gold
mineralisation of similar widths and grade to the existing BAM Gold
Deposit with several instances of visible gold ("VG").
Intersections included bonanza grade gold mineralisation in drill
hole 0421-785 reporting 0.32 metres at 432.0 grams/tonne gold (g/t)
and drill-hole 0420-733 reporting 14.18 metres at 1.52g/t gold.
Results received in the 2020/2021 drilling campaign
included:
Easting Northing Drill-hole From Interval* Au
No Metres Metres g/t
--------- ----------- ------- ---------- -------
00E 470N 0421-768 346.15 2.20 2.51
--------- ----------- ------- ---------- -------
00E 570N 0420-732 193.26 1.02 1.67
--------- ----------- ------- ---------- -------
600E 420N 0421-763 237.05 2.33 0.79
--------- ----------- ------- ---------- -------
including 238.04 0.98 1.40
--------- ----------- ------- ---------- -------
800E 400N 0421-757 164.50 1.04 3.71
--------- ----------- ------- ---------- -------
and 188.50 1.00 8.14
--------- ----------- ------- ---------- -------
900E 385N 0421-754 162.82 12.60 0.33
--------- ----------- ------- ---------- -------
950E 350N 0420-755 118.15 5.30 1.13
--------- ----------- ------- ---------- -------
and 256.80 4.20 1.69
--------- ----------- ------- ---------- -------
1000E 295N 0420-752 235.15 3.07 4.02
--------- ----------- ------- ---------- -------
and 247.08 10.61 1.19
--------- ----------- ------- ---------- -------
1050E 295N 0420-733 78.43 0.67 3.45
--------- ----------- ------- ---------- -------
and 232.82 14.18 1.52
--------- ----------- ------- ---------- -------
including 239.51 3.24 4.48
--------- ----------- ------- ---------- -------
1150E 270N 0420-734 103.50 1.00 4.32
--------- ----------- ------- ---------- -------
and 285.37 9.81 1.34
--------- ----------- ------- ---------- -------
1450E 195N 0420-736 258.88 14.70 1.33
--------- ----------- ------- ---------- -------
including 272.53 1.05 8.50
--------- ----------- ------- ---------- -------
1500E 185N 0420-737 268.26 9.33 1.21
--------- ----------- ------- ---------- -------
Including 268.26 1.08 6.34
--------- ----------- ------- ---------- -------
1550E 190N 0420-739 259.46 6.85 1.76
--------- ----------- ------- ---------- -------
1550E 360N 0420-743 34.35 8.25 0.89
--------- ----------- ------- ---------- -------
and 55.22 0.98 6.04
--------- ----------- ------- ---------- -------
1700E 350N 0420-744 36.73 5.15 0.74
--------- ----------- ------- ---------- -------
1800E 260N 0420-747 131.41 3.71 1.88
--------- ----------- ------- ---------- -------
1900E 100N 0420-740 239.00 12.83 0.85
--------- ----------- ------- ---------- -------
2350E 85S 0420-738 324.38 9.90 1.09
--------- ----------- ------- ---------- -------
2850E 125S 0421-785 191.50 0.32 432.00
--------- ----------- ------- ---------- -------
and 192.30 0.55 3.59
--------- ----------- ------- ---------- -------
2950E 150S 0421-784 92.64 1.81 1.65
--------- ----------- ------- ---------- -------
and 183.76 1.98 2.06
--------- ----------- ------- ---------- -------
3000E 200S 0421-783 226.90 0.84 7.34
--------- ----------- ------- ---------- -------
3200E 260S 0421-780 187.90 7.70 0.41
--------- ----------- ------- ---------- -------
3500E 320S 0421-777 153.90 12.15 0.33
--------- ----------- ------- ---------- -------
and 171.05 3.00 0.45
--------- ----------- ------- ---------- -------
and 184.00 4.00 0.70
--------- ----------- ------- ---------- -------
3600E 370S 0421-776 166.62 1.00 1.38
--------- ----------- ------- ---------- -------
and 177.00 1.00 2.04
--------- ----------- ------- ---------- -------
and 220.90 1.00 4.20
--------- ----------- ------- ---------- -------
3700E 270S 0421-773 8.16 9.44 0.33
--------- ----------- ------- ---------- -------
including 17.00 0.60 2.25
--------- ----------- ------- ---------- -------
3900E 380S 0421-765 117.68 0.67 3.49
--------- ----------- ------- ---------- -------
* The above drill holes were drilled north at 45-52 degrees into
a lithological package dipping approximately sub-vertical to 80
degrees to the south. The actual true thickness of mineralisation
is estimated to represent 65% to 80% of the intervals shown in the
above table.
The 2020/2021 drilling campaign has successfully delineated
further gold mineralisation along strike from the BAM Gold Deposit
and at depth. Drilling below the BAM East defined pit has
consistently intersected the deposit's typical lithology and
mineralisation including frequent sighting of visible gold. Step
out drilling from the defined deposit, to the east for 1,100 metres
and to the west for 1,200 metres at 100 metre spacing, has
intersected lithology and mineralisation similar to the BAM Gold
deposit. Modelling work is underway to determine the next round of
drilling in these areas. The BAM Gold Deposit remains open to the
east and west and down dip.
The BAM Gold Deposit is located along a highly prospective
archean greenstone belt which traverses the Junior Lake Property
from east to west for approximately 31 kilometres, and has great
potential for further significant gold mineralisation. This
favourable greenstone belt ranges from 0.5 to 1.5 kilometres wide
and hosts multiple known gold occurrences including the Lamaune
Gold Prospect.
It is Landore's opinion that the Junior Lake property has
definite potential to host a multi-million ounce gold deposit.
2020 Ground Exploration: An extensive exploration campaign was
completed during the summer of 2020 which included the
establishment of a cut grid and soil sampling westwards along
strike for 2.1 kilometres and eastwards along strike for 2
kilometres from the existing BAM Gold Project. Soil sampling
successfully established the presence of widespread anomalous gold
and multiple gold trends, recording the highest soil-till assay
results to date in both of the 2019/2020 soil till campaigns
completed on the Junior Lake property.
The results identified numerous gold anomalies and trends, which
together with the encouraging geology and geophysics results have
generated numerous new drill targets with the potential of being
advanced into additional resources.
A map of the identified soil gold anomalies showing the regional
growth potential is available in the full version of the Annual
Report available on the Company's website at www.landore.com
A drilling programme is underway to further test for depth
extension of the east defined and extend the known BAM Gold Zone to
the east and west.
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 focussed on the rapid 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 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 - December 1, 2017
Landore Resources Canada Inc. - Junior Lake Project
Deposit Tonnes Ni Cu Co Pt Pd Au NiEq
(%) (%) (%) (g/t) (g/t) (g/t) (%)
--------------- ----------- ------------ ------ ------ ----- -------- -------- -------- -----
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 are 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 are 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 are rounded to three significant figures.
Totals may not add correctly due to rounding.
5. The Mineral Resource estimate uses drill hole data available as of December 16 2015.
6. The Mineral Resource estimate for the B4-7 Deposit is
reported using densities calculated from estimated nickel + cobalt
grades. The Mineral Resource estimate for the Alpha Zone is
reported using densities calculated from estimated nickel
grades.
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
+4.6 million pounds for the deposit to date together with + 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 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.
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 products 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: Golder Associates of Sudbury,
Ontario, have continued with the Environmental Baseline Studies
programme initiated on the mining leases containing the B4-7 and VW
Deposits in the winter of 2007. Water surface monitoring of lakes
and drainage tributaries within the vicinity of the deposits has
continued on at least a bi-annual basis 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-requisite for permitting requirements for the
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
Energy, Northern Development and Mines 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 Exploration Target; and the
Lamaune Iron Deposit.
Within the Mining Leases, Landore has the right, subject to
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 First Nations
and other local communities. This social ideology is at the
forefront of all of Landore'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.
COVID-19:
The spread of COVID-19 and measures taken to contain the spread
of the virus caused significant disruption to Landore's exploration
activities during the first half of 2020. By mid-2020 the Company
resumed Canadian operations, and since then has successfully
operated in accordance with Government COVID-19 guidelines.
Michele Tuomi, P.Geo.
Director/VP Exploration, Landore Resources Canada Inc.
23 June 2021
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2020
Group Group
31 December 31 December
2020 2019
Notes GBP GBP
Exploration costs 9 (1,345,454) (1,241,647)
Administrative expenses 25 (1,363,949) (904,424)
---------------------------------------------- ----- ----------- -----------
Operating loss (2,709,403) (2,146,071)
Other income 27 155,834 -
Finance income 5 13 151
---------------------------------------------- ----- ----------- -----------
Loss before income tax (2,553,556) (2,145,920)
Income tax 8 - -
---------------------------------------------- ----- ----------- -----------
Loss for the year (2,553,556) (2,145,920)
---------------------------------------------- ----- ----------- -----------
Other comprehensive (loss)/income
Items that will subsequently be reclassified
to profit or loss:
Exchange differences on translating foreign
operations 18 (4,594) (30,884)
---------------------------------------------- ----- ----------- -----------
Other comprehensive (loss)/income for
the year net of tax (4,594) (30,884)
---------------------------------------------- ----- ----------- -----------
Total comprehensive loss for year (2,558,150) (2,176,804)
---------------------------------------------- ----- ----------- -----------
Loss attributable to:
Equity holders of the Company (2,552,455) (2,144,998)
Non-controlling interests (1,101) (922)
---------------------------------------------- ----- ----------- -----------
Total comprehensive loss attributable
to:
Equity holders of the Company (2,557,049) (2,175,882)
Non-controlling interests (1,101) (922)
---------------------------------------------- ----- ----------- -----------
Loss per share for losses attributable
to the equity holders
of the Company during the year
- basic 10 (0.03) (0.04)
---------------------------------------------- ----- ----------- -----------
- diluted 10 (0.03) (0.04)
---------------------------------------------- ----- ----------- -----------
The Group's operating loss relates to continuing operations.
Company Statement of Comprehensive Income
For the year ended 31 December 2020
Company Company
31 December 31 December
2020 2019
Notes GBP GBP
Administrative expenses 25 (1,127,692) (629,645)
-------------------------------------- ----- ----------- -----------
Operating loss (1,127,692) (629,645)
Interest receivable 13 151
Foreign exchange (loss)/gain (359,559) 223,960
-------------------------------------- ----- ----------- -----------
Loss before income tax (1,487,238) (405,534)
Income tax expense - -
-------------------------------------- ----- ----------- -----------
Total comprehensive loss for the year (1,487,238) (405,534)
-------------------------------------- ----- ----------- -----------
The Company's operating loss relates to continuing
operations.
Consolidated statement of financial position
As at 31 December 2020
Group Group
At At
31 December 31 December
2020 2019
Notes GBP GBP
Assets
Non-current assets
Property, plant and equipment 11 23,416 32,323
---------------------------------- ----- ------------ ------------
23,416 32,323
Current assets
Trade and other receivables 13 139,524 19,965
Cash and cash equivalents 26 1,052,623 107,668
---------------------------------- ----- ------------ ------------
1,192,147 127,633
---------------------------------- ----- ------------ ------------
Total assets 1,215,563 159,956
---------------------------------- ----- ------------ ------------
Equity
Capital and reserves attributable
to the Company's
equity holders
Share capital - nil par value 15 46,108,934 42,915,903
Share-based payment reserve 16 921,133 640,347
Accumulated deficit 17 (45,905,940) (43,353,485)
Translation reserve 18 (348,111) (343,517)
Total equity shareholders' funds 776,016 (140,752)
---------------------------------- ----- ------------ ------------
Non-controlling interests 22 (4,328) (3,227)
Total equity 771,688 (143,979)
---------------------------------- ----- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 14 409,410 269,058
Current income tax liabilities 14 34,465 34,877
---------------------------------- ----- ------------ ------------
443,875 303,935
---------------------------------- ----- ------------ ------------
Total liabilities 443,875 303,935
---------------------------------- ----- ------------ ------------
Total equity and liabilities 1,215,563 159,956
---------------------------------- ----- ------------ ------------
These consolidated financial statements were approved and
authorised for issue by the Board of Directors on 23 June 2021.
William Humphries Glenn Featherby
Director Director
Company statement of financial position
As at 31 December 2020
Company Company
At At
31 December 31 December
2020 2019
Notes GBP GBP
Assets
Non- current assets
Investment in subsidiaries 12 94,888 94,888
---------------------------------- ----- ------------ ------------
94,888 94,888
---------------------------------- ----- ------------ ------------
Current assets
Trade and other receivables 13 32,983,474 31,505,051
Cash and cash equivalents 26 549,559 57,101
---------------------------------- ----- ------------ ------------
33,533,033 31,562,152
---------------------------------- ----- ------------ ------------
Total assets 33,627,921 31,657,040
---------------------------------- ----- ------------ ------------
Equity
Capital and reserves attributable
to the Company's
equity holders
Share capital - nil par value 15 46,108,934 42,915,903
Share-based payment reserve 16 921,133 640,347
Accumulated deficit 17 (13,471,794) (11,984,556)
---------------------------------- ----- ------------ ------------
Total equity shareholders' funds 33,558,273 31,571,694
---------------------------------- ----- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 14 69,648 85,346
---------------------------------- ----- ------------ ------------
Total liabilities 69,648 85,346
---------------------------------- ----- ------------ ------------
Total equity and liabilities 33,627,921 31,657,040
---------------------------------- ----- ------------ ------------
These financial statements were approved and authorised for
issue by the Board of Directors on 23 June 2021.
William Humphries Glenn Featherby
Director Director
Consolidated statement of changes in equity
For the year ended 31 December 2020
Equity shareholders' funds
-------------------------------------------- -----------
Share capital Share-based Accumulated Translation Non-controlling
nil par value payment deficit reserve interest Total
GBP GBP GBP GBP GBP GBP
Balance as at 1 January 2019 41,247,016 726,453 (41,432,637) (312,633) (2,305) 225,894
--------------- ----------- ------------ ----------- ----------------- -----------
Share option reserve
adjustment for
lapsed options (note 16) - (224,150) 224,150 - - -
Issue of options (note 16) - 128,243 - - - 128,243
Issue of warrants (note 16) - 9,801 - - - 9,801
Issue of ordinary share
capital - nil par (note 15) 1,820,000 - - - - 1,820,000
Issue costs (note 15) (151,113) - - - - (151,113)
Total transactions with
owners 1,668,887 (86,106) 224,150 - - 1,806,931
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Loss for the year - - (2,144,998) - (922) (2,145,920)
Exchange difference from
translating
foreign operations - - - (30,884) - (30,884)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Total comprehensive loss for
the year - - (2,144,998) (30,884) (922) (2,176,804)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Balance as at 31 December
2019 42,915,903 640,347 (43,353,485) (343,517) (3,227) (143,979)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Balance as at 1 January
2020 42,915,903 640,347 (43,353,485) (343,517) (3,227) (143,979)
--------------- ----------- ------------ ----------- ----------------- -----------
Issue of options (note 16) - 220,435 - - - 220,435
Issue of warrants (note 16) - 60,351 - - - 60,351
Issue of ordinary share
capital - nil par (note 15) 3,503,539 - - - - 3,503,539
Issue costs (note 15) (310,508) - - - - (310,508)
Total transactions with
owners 3,193,031 280,786 - - - 3,473,817
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Loss for the year - - (2,552,455) - (1,101) (2,553,556)
Exchange difference from
translating
foreign operations - - - (4,594) - (4,594)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Total comprehensive loss for
the year - - (2,552,455) (4,594) (1,101) (2,558,150)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
Balance as at 31 December
2020 46,108,934 921,133 (45,905,940) (348,111) (4,328) (771,688)
----------------------------- --------------- ----------- ------------ ----------- ----------------- -----------
The accounting policies and notes on pages 46 to 76 form an
integral part of these consolidated financial statements.
Company statement of changes in equity
For the year ended 31 December 2020
Share capital Share-based Accumulated
nil par value payment deficit Total
GBP GBP GBP GBP
Balance as at 1 January 2019 41,247,016 726,453 (11,803,172) 30,170,297
------------- ----------- ------------ -----------
Lapsed options (note 16) - (224,150) 224,150 -
Issue of options (note 16) - 128,243 - 128,243
Issue of warrants (note 16) - 9,801 - 9,801
Issue of ordinary share capital - nil par (note 15) 1,820,000 - - 1,820,000
Issue costs (note 15) (151,113) - - (151,113)
Total transactions with owners 1,668,887 (86,106) 224,150 1,806,931
---------------------------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (405,534) (405,534)
---------------------------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for the year - - (405,534) (405,534)
---------------------------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December 2019 42,915,903 640,347 (11,984,556) 31,571,694
---------------------------------------------------- ------------- ----------- ------------ -----------
Balance as at 1 January 2020 42,915,903 640,347 (11,984,556) 31,571,694
------------- ----------- ------------ -----------
Issue of options (note 16) - 220,435 - 220,435
Issue of warrants (note 16) - 60,351 - 60,351
Issue of ordinary share capital - nil par (note 15) 3,503,539 - - 3,503,539
Issue costs (note 15) (310,508) - - (310,508)
Total transactions with owners 3,193,031 280,786 - 3,473,817
---------------------------------------------------- ------------- ----------- ------------ -----------
Loss for the year - - (1,487,238) (1,487,238)
---------------------------------------------------- ------------- ----------- ------------ -----------
Total comprehensive loss for the year - - (1,487,238) (1,487,238)
---------------------------------------------------- ------------- ----------- ------------ -----------
Balance as at 31 December 2020 46,108,934 921,133 (13,471,794) 33,558,273
---------------------------------------------------- ------------- ----------- ------------ -----------
Consolidated statement of cash flows
For the year ended 31 December 2020
Group Group
31 December 31 December
2020 2019
Notes GBP GBP
Cash flows from operating activities
Operating loss (2,709,403) (2,146,071)
Other income 27 155,834 -
Finance income 5 13 151
Depreciation of tangible fixed assets 11 8,629 12,121
Share options issued 16 220,435 128,244
Foreign exchange loss on non-cash items (44,961) (33,620)
Non-cash director remuneration 7 68,000 -
Non-cash exploration and evaluation expenditures 43,582 -
(Increase)/decrease in trade and other
receivables (77,073) 23,622
Increase in trade and other payables 144,437 266,979
Net cash used in operating activities (2,190,507) (1,748,574)
Cash flows from financing activities
Proceeds from issue of ordinary shares 15 3,391,701 1,720,000
Issue costs 15 (250,157) (141,312)
Net cash generated by financing activities 3,141,544 1,578,688
Net increase/(decrease) in cash and cash
equivalents 951,037 (169,886)
Cash and cash equivalents at beginning
of the year 107,668 277,458
Exchange (loss)/gain on cash and cash
equivalents (6,082) 96
------------------------------------------------- ----- ----------- -----------
Cash and cash equivalents at end of the
year 1,052,623 107,668
------------------------------------------------- ----- ----------- -----------
Company statement of cash flows
For the year ended 31 December 2020
Company Company
31 December 31 December
2020 2019
Notes GBP GBP
Cash flows from operating activities
Operating loss (1,127,692) (629,645)
Finance income 13 151
Foreign exchange (loss)/gain on non-cash
items (359,559) 223,961
Non-cash director remuneration 7 68,000 -
Share options issued 16 220,435 128,243
Increase in trade and other receivables (1,434,585) (1,611,012)
Increase in trade and other payables (15,698) 121,043
-------------------------------------------- ----- ----------- -----------
Net cash used in operating activities (2,649,086) (1,767,259)
Cash flows from financing activities
Proceeds from issue of ordinary shares 15 3,391,701 1,720,000
Issue costs (250,157) (141,312)
Net cash generated by financing activity 3,141,544 1,578,688
Net decrease in cash and cash equivalents 492,458 (188,571)
Cash and cash equivalents at beginning
of year 57,101 245,672
-------------------------------------------- ----- ----------- -----------
Cash and cash equivalents at end of year 549,559 57,101
-------------------------------------------- ----- ----------- -----------
Notes
1. Publication of non-statutory accounts
The financial information, for the year ended 31 December 2020,
set out in this announcement does not constitute statutory
accounts.
This information has been extracted from the Group's financial
statements to that date upon which the auditors' opinion is
unmodified but contains material uncertainty on going concern.
2. Basis of preparation
The financial information, for the year ended 31 December 2020,
set out in this announcement, has been:
-- computed in accordance with EU-Adopted International
Financial Reporting Standards ("EU IFRSs"), however this
preliminary announcement does not contain sufficient information to
comply with IFRSs. The EU IFRSs compliant Consolidated Financial
Statements will be published in the Annual Report for the year
ended 31 December 2020; and
-- prepared on the basis of the accounting policies as stated in
the Annual Report for the year ended 31 December 2020.
3. Going concern
The consolidated financial statements are prepared on a going
concern basis with a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. The Group's comprehensive loss after tax for
the year as at 31 December 2020 amounted to GBP2.6m.
The Group raised GBP3.5m on 16 February 2021 with the intention
of providing sufficient funds to meet the planned operational
expenditure and working capital up to 31 December 2021. With the
addition of GBP646,672 raised from the exercise of warrants and
share options post year end the Board are satisfied the Group has
sufficient cash to meet its requirements for a period of at least
12 months from the date of approval of these financial
statements.
Due to the location of the Group's principal assets, it is well
protected from the effects of any potential COVID-19 resurgence on
its operations. Whilst the Group is exposed to any wider economic
implications from further restrictions, the Board believe that its
interests in a range of precious metals combined with the drilling
progress achieved in 2020 provide a significant hedge to the
potential exposure of further Covid-19 impacts. The Group's
operations during 2020 were unaffected by the pandemic.
The Board also note the significant degree to which future
expenditure is uncommitted. Whilst the Board is pursuing maximum
progress at Junior Lake, in a downside scenario the Board has
significant scope to control costs and its cash management
flexibility has been demonstrated over a number of years.
The Group will continue to consider all options to maximise
shareholder value and the Directors are confident of raising
further equity should the need arise.
4. Annual Report
The Annual Report for the year ended 31 December 2020, Notice of
the Annual General Meeting and Form of Proxy will shortly be
available on the Company's website at www.landore.com
The Annual General Meeting of Landore Resources Limited will be
held at La Tonnelle House, Les Banques, St Sampson, Guernsey, GY1
3HS on 20 July 2021 at 11.30 am.
Effect of COVID-19 regulations on the Annual General Meeting
In light of the requirement for persons arriving in the
Bailiwick of Guernsey to potentially self-isolate for up to 21 days
on arrival pursuant to restrictions imposed by the Medical Officer
of Health in Guernsey under the Emergency Powers (Coronavirus)
(General Provision) (Bailiwick of Guernsey) (No.6) Regulations 2021
(as supplemented, amended or replaced from time to time) (the
"Guernsey Quarantine Restrictions"), the Company strongly
encourages all Shareholders to submit their Form of Proxy,
appointing the Chairman of the Annual General Meeting as proxy.
Only the formal business of the Resolutions will be carried out at
the meeting and no update will be provided. At the date of
publication of this Notice of Annual General Meeting the Company
notes that the Guernsey Civil Contingency Authority has announced
that from 1 July 2021, there will be no isolation or testing
requirements in respect of persons who (i) have been fully
vaccinated (provided 14 days have elapsed from the date of
receiving their second dose of the vaccine prior to arrival in
Guernsey) and (ii) are travelling into Guernsey from jurisdictions
within the Common Travel Area (CTA) (and who have not been in a
jurisdiction outside the CTA within the prior 14 days) (such
persons being "Excepted Category Persons"). The CTA includes the
United Kingdom, the Bailiwick of Guernsey, the Bailiwick of Jersey,
the Isle of Man and the Republic of Ireland. The States of Guernsey
have confirmed however that Public Health may apply overrides to
the categorisation of any country or region if it has concerns,
including countries or regions of countries, within the CTA.
Persons who are travelling into Guernsey and who are not Excepted
Category Persons will be subject to the isolation and testing
requirements applicable to the jurisdiction from which they are
travelling and should consult
https://covid19.gov.gg/guidance/travel/countries for more
information. The Annual General Meeting has been arranged on the
assumption that the Guernsey Quarantine Restrictions as at the date
of publication of this Notice of Annual General Meeting will
continue to apply at the date of the Annual General Meeting. Unless
notified otherwise after publication of the Notice of Annual
General Meeting, no Shareholder, proxy or corporate representative
who has not complied fully with the relevant travel restrictions
and/or other requirements of the Guernsey Quarantine Restrictions
should attend the Annual General Meeting in person. The Chairman of
the Annual General Meeting may exercise his powers to exclude any
person who has arrived in Guernsey and who is not in compliance
with the relevant travel restrictions in force at such time (or is
otherwise in breach of the Guernsey Quarantine Restrictions) and
who attempts to attend the Annual General Meeting, and they may not
be permitted entry to the location of the Annual General Meeting.
The situation regarding COVID-19 is constantly evolving, and the
Government of Guernsey may change current restrictions or implement
further measures relating to the holding of general meetings during
the affected period. Any changes to the Annual General Meeting
(including any change to the location of the Annual General
Meeting) will be communicated to Shareholders before the meeting
through our website at https://www.landore.com/index.php and, where
appropriate, by announcement made by the Company to a Regulatory
Information Service. It is suggested that Shareholders consult
https://covid19.gov.gg/guidance/travel for updates closer to the
date of the meeting.
Shareholders will find accompanying the Notice of AGM, a Form of
Proxy, for use in connection with the Annual General Meeting. The
Form of Proxy should be completed and returned in accordance with
the instructions thereon so as to be received by the Company's
Registrar Agents, Computershare Investor Services (Guernsey)
Limited, as soon as possible and in any event not later 11.30am on
16 July 2021.
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END
FR UOSBRANUNUAR
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June 24, 2021 02:00 ET (06:00 GMT)
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