Analysts at Cenkos Securities have reiterated a 'buy' rating on Landore Resources Ltd (AIM:LND, OTC:LNDLF) following news the company has exited its holding in the Root Lake Project.
The analysts noted that ASX-listed Green Technology Metals Ltd concluded the purchase of 50% (1.5%) of the 3% net smelter royalty (NSR) that Landore held over the Root Lake Property for C$2mln in cash and exercised an option to purchase the remaining 1.5% NSR in return for a further cash payment of C$1m.
Landore has received a total of C$3m in cash, they added.
The Cenkos analysts said: "Based on our modelling NPV 5%-US$1,600 and assuming further capital is required next year, while applying a 0.25x NAV for the PEA stage, we maintain our BUY rating and value Landore at £48mln (42p). This is a 3.2x uplift on the Monday’s close."