Landore Resources Ltd (AIM:LND, OTC:LNDLF) confirmed that it has received a further payment under its option agreement with Lithoquest Resources in regard to the sale of the Miminiska Lake and Keezhik Lake properties in the Thunder Bay Mining district, Northern Ontario.
The payment comprises of C$251,824 cash and 2,175,939 new common shares in Storm Exploration Inc to the value of C$248,176, and will go towards Landore’s working capital needs.
Landore has agreed to amend the terms of the option agreement such that Storm can now acquire a 100% interest in the property by making staged payments to Landore totalling C$1,625mln in cash and an additional C$2.4mln either in cash or by issuing Landore with new shares in Storm
Following receipt of the remaining payments and the exercise of the option by Storm, Landore shall be entitled to receive a 2% net smelter returns royalty from the property.
Storm retains the right to reduce the NSR to 1% by paying Landore the sum of C$1mln in cash.