Landore Resources Ltd (AIM:LND) has sold 100% of certain tenements known as the Swole Lake project within the wider Junior Lake Property in Ontario, Canada for cash and shares.
After amending a previous option for an 80% purchase, buyer Green Technology Metals Ltd (ASX:GT1) has now agreed to pay C$1 million (£0.6 million) within the month, plus shares in GT1 worth C$0.6 million.
GT1 will also take on the responsibility to satisfy the existing 2.0% net smelter royalty which currently covers the nine mineral claims in and around the Swole Lake lithium occurrences.
Landore said the cash received will go towards working capital and the shares it intends to dispose of “in an orderly manner in due course”.
Chief executive Claude Lemasson, who was appointed in June, said the deal “is the next step in optimizing our portfolio of projects”.
“As our focus is on the BAM Gold Project, where we expect to begin drilling before year end, this transaction supports the funding of our activities.”