Landore Resources Limited (LON:LNDO) has raised gross proceeds of £250,000 through a share subscription by James Hudleston, an existing investor in the Company.
The junior gold explorer said the subscription is for 35,714,286 new ordinary shares at a price of 0.7p each. Landore shares closed trading on Tuesday at 0.69p.
The group added that the proceeds of the subscription are to be used to further fund its working capital and its exploration programme.
It noted that, following the subscription, Hudleston will have a beneficial interest in 215,394,266 ordinary shares in the company, representing approximately 17.4% of the enlarged issued share capital.
Landore declared: “The independent directors consider, having consulted with the Company's nominated adviser, Cenkos, that the terms of James Hudleston's participation in the Fundraising are fair and reasonable insofar as Shareholders are concerned.”
Last month Landore said it expects the ongoing drilling programme at its BAM project to establish the Junior Lake property in Ontario, Canada as a multi-million-ounce gold deposit.
A preliminary economic assessment in February valued BAM at US$69.2mln on a base case of 951,000 contained ounces of gold.