Landore Resources Limited has provided an update on the strategic review of the options available to the company in relation to its Canadian subsidiary/assets, which it announced on May 9, 2022, with the deadline for completion of the first stage extended until December 30, 2022.
In light of the significance of the BAM Gold and Battery Metals deposits located on the Junior Lake property, as announced in the company's Mineral Resource Estimate (MRE) update released on February 8, 2022, Landore's directors elected to undertake the strategic review in order to help the board achieve its objective in maximizing shareholder value.
The strategic review, which commenced in May, is considering a number of options, including the sale of all or a part of its wholly owned subsidiary, Landore Resources Canada Inc, or the Junior Lake Project, potential joint venture arrangements or strategic partnerships, or a combination thereof.
Landore said a number of international mining and exploration companies were invited to express interest in the company's assets and a number of these were progressed, with a short list provided with access to an extensive data room.
The first stage of the strategic review was initially expected to complete by September 2022, the company noted, however, due to the severe world financial market downturn with resultant decline in metal prices and uncertainty on costs, the mining and exploration industry has focused on adapting to these new conditions and it has not been possible for Landore to conclude discussions with potential counterparties.
In order to provide Landore with more time to engage with those mining companies who remain interested in Landore's assets, the board has elected to extend the deadline for completion of the first stage of the strategic review until December 30, 2022.
The company said its board has been encouraged by the initial interest expressed in Landore's Lithium assets, with industrial demand for Lithium currently high, and the price of the metal remaining strong.
On October 10, 2022, Landore said it had executed a binding agreement with ASX-listed Green Technology Metals Ltd (GT1) through which GT1 proposed to buyback and extinguish 50% of the company's 3% net smelter royalty interest over the Root Lake Project. The transaction remains subject to finalizing and executing an extinguishment agreement, which is expected to occur before October 21, 2022, and accordingly, there can be no guarantee that the proposed transaction will be completed.
In addition, Landore said, early-stage discussions are ongoing with several parties regarding Landore's Junior Lake Northern area, which contains known Lithium occurrences. These discussions remain at an early stage and there can be no guarantee that it will be possible to conclude a transaction with regard to these assets, the company concluded.