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Landore Resources Ltd. RNS Release

Interim Results


RNS Number : 8972R
Landore Resources Limited
27 September 2017
 

                                                               

27 September 2017

 

Landore Resources Limited

("Landore Resources" or the "Company")

 Interim Results for the six months ended 30 June 2017

   

Landore Resources is pleased to announce its interim results for the six months ended 30 June 2017.

 

   For more information, please contact:

Bill Humphries, Chief Executive Officer

Richard Prickett, Finance Director

Landore Resources Limited

Tel: 07734 681262

Tel: 07775 651421

www.landore.com

 

Angela Hallett / James Spinney / Jack Botros

Strand Hanson Limited

Nominated Advisor and Broker                                                                                                                                                                                                                   

Tel: 020 7409 3494

   

Copies of the Interim statement are available on the website,  www.landore.com  

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

 

 

 

LANDORE RESOURCES LIMITED

 

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2017 to 30 June 2017.  All amounts are stated in sterling.

 

Overview

Landore Resources Limited is listed on the AIM market operated by the London Stock Exchange plc, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc., is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

 

Results of Operations

The financial results for the six months to 30 June 2017 show a loss of £1,750,807 (2016: loss £732,975). These results were in line with expectations.   Exploration costs were £1,321,976 (2016: £250,108).

 

During the period under review £2,025,619 (2016: £1,228,830) was raised from the issue of shares, net of issue costs.

 

The Group has no debt but will need to raise further equity in order to carry out its exploration and development activities, and also for working capital.

 

Operations

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 four properties in Eastern Canada. Landore also owns a 30 per cent interest in the West Graham property.

 

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.

 

Landore's primary operations focus during the first half of 2017 was on the growth of the newly discovered BAM East Gold deposit located on the 100% owned highly prospective Junior Lake Property, Northwestern Ontario.

 

Full details of the Group's projects, including maps, Canadian National Instrument 43-101 (NI 43-101) resource reports, geophysical surveys etc. can be viewed on the Group's website, www.landore.com .

 

The Junior Lake Property:

The Junior Lake property is located approximately 235 kilometres north-northeast of Thunder Bay and is host to the newly discovered BAM East Gold deposit, the B4-7 Nickel-Copper-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 extends for 30 kilometres and covers an area of 22,497 hectares.

BAM East Gold Resource:

Discovered in December 2015, the BAM East Gold resource contains 301,000 ounces of gold (February 2017

National Instrument (NI) 43-101 Mineral Resource Estimate and Technical Report). This resource is located approximately midway along a 2.7 kilometre long, east-southeast to west-northwest trending MaxMin geophysical anomaly (MM-7), at the western end of which is located the original BAM gold zone discovered by Landore resources in 2003.

  

Summer Drilling Campaign:

Drilling on the BAM East Gold Project re-commenced on 1 April 2017, focusing on the further delineation and extension of the defined resource together with targeting potential deposits on the highly prospective geophysical trend MM-7, host to the BAM East Gold Deposit.

 

The campaign was completed in July 2017 with 65 HQ and NQ diamond drill-holes (0417-561 to 0417-625), for a total of 11060 metres (m), drilled. Drilling proceeded as planned, on time and within budget. 

 

Within this campaign, drilling at the original BAM gold zone successfully identified a potential resource with similar lithology and grades to the BAM East Gold Deposit located 1,000 metres along strike to the east.  The original BAM gold zone mineralisation remains open along strike to the east, west and down dip.

 

In addition, step out drilling along strike from the BAM East Gold Deposit has extended the mineralisation with similar lithology and grades 100 metres West and 500 metres to the East giving a potential resource continuity of 1.2 kilometres from 2000E to 3200E.  The BAM East Gold mineralisation remains open along strike to the east, west and down dip.

 

All data from the campaign is being collated for the preparation of a resource update, by our technical consultant RPA, scheduled for completion in Q4 2017.

 

Exploration Programme:

Following the successful discovery of the BAM East Gold deposit, Landore Resources initiated a review of the geology and mineralisation on several of the Company's earlier gold findings, including the re-interpretation of the Lamaune Gold Deposit. The reviews concluded that several of these gold prospects, including the Lamaune Gold Deposit, were similar in geology and mineralisation to the BAM East Gold Deposit.

 

The review has encouraged the Company's belief that the favorable geological lithology containing the BAM East Gold Deposit has the potential to continue along the full 30 kilometre east-west extent of the greenstone belt traversing the Landore-Lamaune properties.

 

On 12 September 2017, Landore announced that through a debt settlement agreement, it would take 90% ownership and control of the Lamaune assets subject to Lamaune Iron Shareholders approval on 11th October.

 

Landore has initiated an extensive field exploration programme aimed at identifying potential drill targets. Three Geological teams supported by a Geophysics contractor are currently working on this programme.

 

Outlook

The rapid delineation of the initial BAM East Gold Deposit in just 12 months since discovery together with the recently completed, highly successful, summer drilling campaign, bodes well for the possibility of finding and delineating similar open pit gold deposits along this highly prospective Junior Lake trend.

 

Following the receipt of the Resource Update in Q4 2017 Landore intends to initiate further extension drilling both east and west along trend and down dip on the existing deposit.

 

Indications are that the BAM East Gold deposit and adjacent areas have potential for substantial growth.

 

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.

27 September 2017

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

 

Notes

 

Group

Six months ended

30 June 2017

£

 

Group

Six months ended

30 June 2016

£

 

Exploration costs

2

 

(1,321,976)

 

(250,108)

 

Other income

 

 

-

 

26,182

 

Administrative expenses

 

 

(428,706)

 

(508,340)

 

 

 

 

 

 

 

 

Operating loss

 

 

(1,750,682)

 

(732,266)

 

 

 

 

 

 

 

 

Finance income

Interest payable

 

 

1,015

(1,140)

 

-

(709)

 

 

 

 

 

 

 

 

Loss before income tax

 

 

(1,750,807)

 

(732,975)

 

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

-

 

 

 

 

 

 

 

 

Loss for the period

 

 

(1,750,807)

 

(732,975)

 

 

Other comprehensive loss:

 

 

 

 

 

 

Exchange difference on translating foreign

 

 

 

 

 

 

Operations

 

 

(18,070)

 

(10,837)

 

Other comprehensive loss for the year

 

 

 

 

 

 

 net of tax

 

 

(18,070)

 

(10,837)

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

 

 

(1,768,877)

 

(743,812)

 

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

 

Equity holders of the Company

 

 

(1,750,807)

 

(732,975)

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

Equity holders of the Company

 

 

(1,768,877)

 

(743,812)

 

 

 

 

 

 

 

 

Loss per share attributable to the

 

 

 

 

 

 

equity holders of the Company during the year

 

 

 

 

 

 

 

 

 

 

 

 

 

- basic & diluted

3

 

(£0.002)

 

(£0.001)

 

 

 

 

 

 

 

 

 

The Group's operating loss relates to continuing operations.

 

The notes and accounting policies below form part of these interim financial statements.

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

Share

capital

£

Share

premium

£

Share

options

reserve

£

 

 

Warrants

reserve

£

Retained

earnings

£

Cumulative

translation

reserve

£

Total

£

Balance at
1 January 2016

6,282,038

27,627,990

858,019

33,690

(34,374,928)

(305,470)

121,339

Loss for the period

-

-

-

-

  (732,975)

-

(732,975)

Other comprehensive loss in the period

-

-

-

-

-

(10,837)

(10,837)

 

 

 

 

 

 

 

Issue of ordinary share capital

725,929

502,901

-

-

-

-

1,228,830

Change in nominal share value

28,130,891

(28,130,891)

-

-

-

-

-

Share options issued

-

-

245,864

-

-

-

245,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
30 June 2016

 

35,138,858

 

-

 

1,103,883

 

33,690

 

(35,107,903)

 

(316,307)

 

852,221

 

Balance at
1 January 2017

35,264,858

-

714,541

33,690

(35,710,215)

(344,495)

(41,621)

Loss for the period

-

-

-

-

(1,750,807)

-

(1,750,807)

Other comprehensive loss  in the period

-

-

-

-

-

(18,070)

(18,070)

 

 

 

 

 

 

 

Issue of ordinary share capital

2,107,425

-

-

-

-

-

2,107,425

Placing expenses

(41,846)

-

-

-

-

-

(41,846)

Share options lapsed

-

-

(66,449)

-

66,449

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
30 June 2017

 

37,330,437

 

-

 

648,092

 

33,690

 

(37,394,573)

 

(362,565)

 

255,801

 


The accounting policies and notes below form part of these financial statements.

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2017

 

 

                                                                                                                   Group                               Group                               Group

                                                                                                                      As at                                  As at                                  As at

                                                                                                      30 June 2017                  30 June 2016       31 December 2016

                                                                          Notes                                       £                                          £                                          £

Assets

 

 

 

 

 

 

 

 

 

 

 

Non current assets

 

 

 

 

 

Property, plant and equipment

 

 

23,531

35,480

30,480

Investments

 

 

-

-

-

 

 

 

 

 

 

 

 

 

23,531

35,480

30,480

Current assets

 

 

 

 

 

Trade and other receivables            

 

 

160,350

19,070

65,799

Cash and cash equivalents

 

 

618,924

944,544

148,532

 

 

 

 

 

 

 

 

 

779,274

963,614

214,331

 

 

 

 

 

 

Total assets

 

 

802,805

999,094

244,811

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Capital and reserves attributable to the Company's equity holders

 

 

 

 

 

Share capital

4

 

37,330,437

35,138,858

 35,264,858

Share premium

 

 

-

-

-

Share options reserve

 

 

648,092

1,103,883

714,541

Warrants reserve

 

 

33,690

33,690

33,690

Retained earnings

5

 

(37,394,573)

(35,107,903)

(35,710,215)

Cumulative translation reserve

 

 

(362,565)

   (316,307) 

(344,495)

 

 

 

 

 

 

Total equity

 

 

255,081

852,221

(41,621)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables                          

 

 

512,216

112,536

250,248

Income tax liabilities

 

 

35,508

34,337

36,184

 

 

 

547,724

146,873

286,432

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

547,724

146,873

286,432

 

 

 

 

 

 

Total equity and liabilities

 

 

802,805

999,094

244,811

                 

 

The notes and accounting policies below form part of these interim financial statements.

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

 

Group

Six months ended

30 June 2017

£

Group

Six months ended

30 June 2016

£

Cash flows from operating activities

 

 

 

Operating loss

 

(1,750,682)

(732,266)

Finance income

 

1,015

-

Finance costs

 

(1,140)

(709)

Depreciation of tangible fixed assets

 

6,824

6,002

Foreign exchange loss on non-cash items

 

(20,546)

(12,940)

Share option charge

 

-

245,864

Other non-cash movements

 

39,960

-

(Increase)/decrease in receivables

 

(96,250)

21,636

Increase/(decrease) in payables

 

267,108

 

(198,624)

 

Net cash outflow from operating activities

 

(1,553,711)

(671,037)

Cash flows from investing activities

 

 

 

Purchase of property, plant and equipment

 

(404)

-

 

 

(404)

-

Cash flows from financing activities

 

 

 

Issue of ordinary share capital

 

2,067,465

1,228,830

Issue costs

 

(41,846)

 

-

 

Net cash inflow from financing activities

 

2,025,619

1,228,830

 

 

 

 

Net increase in cash and cash equivalents

 

471,504

557,793

Cash and cash equivalents at beginning of period

 

148,532

368,475

Exchange (loss)/gain on cash and cash equivalents

 

(1,112)

 

18,276

 

Cash and cash equivalents at end of period

 

618,924

 

944,544

 

 

 

The notes and accounting policies below form part of these interim financial statements.

 

LANDORE RESOURCES LIMITED

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

1          Basis of accounting and accounting policies

 

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union at the time of preparing these financial statements (September 2017).  The Directors have elected not to apply IAS34 Interim Financial Reporting.

 

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2016.

 

2          Exploration expenditure and mineral properties

               

 

 

1 January

2017

£

 

Net

expenditure

in period

£

 

Accumulated

expenditure

30 June 2017

£

Junior Lake/Lamaune Lake

17,416,905

 

1,311,633

 

18,728,538

Miminiska Lake

1,522,288

 

2,822

 

1,525,110

Lessard

697,191

 

3,150

 

700,341

Frond Lake

81,735

 

1,555

 

83,290

Wottam

61,558

 

-

 

61,558

Others, including Swole Lake and West Graham

69,660

 

2,816

 

72,477

 

 

 

 

 

 

 

 

 

 

19,849,337

 

 1,321,976

 

21,171,314

 

                Mineral properties at 30 June 2017 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

 

3          Loss per share

 

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 759,215,748 (June 2016: 634,924,131).

 

Diluted loss per share

 

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

 

 

 

 

 

 

 

4          Share capital

               

 

 

 

 

30 June

2017

£

1 January

2017

£

 

Issued:

785,540,779 (2016: 707,488,001) ordinary shares at nil par value

 

 

 

 

37,330,437

 

 

 

35,264,858

             

 

On 3 March 2017, 74,075,000 ordinary shares were issued at a price £0.027 each as part of a share subscription raising £2,000,025.

 

 

A further 3,700,000 ordinary shares were issued on 3 March 2017 at £0.027 per share as part of a share subscription raising £99,900.

 

A further 277,778 ordinary shares were issued on 16 March 2017 at £0.027 per share in settlement of a payable of £7,500.

 

                                                                                                                                                                                                                     

 

 

 

 

 

 

 

 

Share

capital

2017

£

At 1 January 2017

Shares issued in the period

Share issue costs

 

 

 

35,264,858

2,107,425

(41,846)

 

 

 

 

 

At 30 June 2017

 

 

 

37,330,437

 

 

 

5          Retained earnings

 

 

 

 

Share

capital

2017

£

At 1 January 2017

 

 

 

(35,710,215)

Loss for the period

 

 

 

(1,750,807)

Fair value of share options lapsed

 

 

 

66,449

 

 

 

 

 

At 30 June 2017

 

 

 

(37,394,573)

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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