Landore cuts a tidy cash and royalty deal on Root Lake Share 06:59 10 Feb 2016 Landore Resources is to sell its Root Lake lithium project in Canada in a cash, shares and royalty deal with Autralian-listed company Ardiden Landore cuts a tidy cash and royalty deal on Root Lake Landore is one of the few juniors still drilling It’s a telling statement that Landore Resources (LON:LND) was one of only two junior mining companies that undertook any drilling in Northern Ontario last year.
Northern Ontario is one of the world’s great mining destinations, hosting as it does the Sudbury and Thunder Bay projects amongst others, and has long been a stomping ground of Landore’s Richard Prickett and Bill Humphries.
In a former life they were there with Brancote too, a company they sold 15 years ago in the first significant successful mining transaction that took place on the Aim market.
This time round, the focus has largely been on the Junior Lake area where Landore has been methodically working up the B4-7 nickel project to the point where it now boasts nearly 2.7 million tonnes of ore at 1.24% nickel equivalent in the indicated category.
But Landore also has several other projects both in and around Junior Lake and dispersed more widely across the region.
Which brings us to the second of the two companies that found the wherewithal to undertake drilling in Northern Ontario last year: Ardiden (ASX:ADV).
Ardiden is Australian-listed but has lately demonstrated a serious intent to build a portfolio of lithium projects in Canada.
It also has shareholders in common with Landore, so it was perhaps inevitable that the two companies would come together at some stage.
In a deal announced on 10th February Landore has announced that it is to sell the Root Lake lithium project, which lies more than 400 kilometres away from Junior Lake, to Ardiden in a cash, shares and royalty deal.
Ardiden will pay an initial non-refundable C$50,000 deposit, plus a further C$150,000 in cash on completion, C$150,000 in Ardiden shares, and the granting of a 3% net smelter royalty.
What’s more, the value of the royalty has been underpinned by an agreement that Ardiden has the right to buy back half of the NSR for C$1 mln.
“This is a very good deal as far as we’re concerned,” says Landore’s Bill Humphries.
“The asset is non-core for Landore. It needs to be drilled and enlarged and we don’t have the money to do that. And Ardiden are dedicated towards lithium. It’s win-win.”
The C$50,000 in the bank helps too, in a market that is no longer friendly towards junior miners.
Not that Landore has ever seriously struggled for funding. It has several key backers, including its own directors, and knows when and how to cut its cloth according to market condi
Given the current price of nickel it'll now need to double in price surely before any outside party could make an investment case or show an IRR either as a JV partner or outright purchase?
Appreciate they have to be positive with updates but when you read back you'll see that there's been nothing but misplaced bullsh*t over a great number of years (especially in 2008 and 2009). Still, if I could trouser £2 million to keep me gainfully employed on a part-time basis for over a decade to deliver nothing but endless surveys & drilling updates & share dilutions........ why would I bother if shares have lost 95% of their value for the private investor?
Thank you for the welcome cloud9 whether we invest or trade we are all in it to make money. If the gentleman is short good luck to him. No point in wasting time being negative about the situation if you are not happy. The results of the directors will come to fruition at some point.. they have there money invested as well. Happy to hold. Await the the results of the drilling. Good luck to all long or short.
Thank you for the reply? Are you short 1 mill ? If not why? You pretty much called it right. My last tranche was at .49 i made a judgement call based on a few things. my risk is known in advance of any investment i make.i am a big fan of the tudor jones and larry williams trading styles as i trade 30 yr Tbonds.The minute i place a trade i want it to go against me as i have tools to load up at pivot points on the way back up or down. .5 was my pivot i dot want this trade past .015 so i know my risk. i will be the first to say i got lucky when things play out. No point in putting down the company or the directors. we are our own council we place the trade we accept the risk. Best to leave these guys to get on with it aimho... Good luck to all Long or short.
Welcome to your first post on LSE/LND 'Gera'. Nice to hear your views on LND and it's current performance.
For the record and fwiw I hold just shy of 1 million shares in LND.
If you are, as you say, a new shareholder & only making your 1st post on here - why are you so seemingly concerned about my OCD behaviour for so long? It only takes me a few seconds to wang a post on here. No biggy.
What about all the *ankers who used to post adnauseam years back on numerous BBs with the ear of the directors about how brilliant a wee Company LND was and what a great bargain it was at 17p. I feel sorry for the suckers who invested at circa 15-17p and remained loyal holders. Can't see them ever getting their investment back here. If they do, there'll be no profit for sure.
Personally I'm only being honest & critical and calling it as I see it. Happy to be proven wrong. In fact, would encourage it.
madsktpan by what i can see you are obsessed with finding and using news and post's to put down the company. Hidden agenda? or do you have to much time on your hands...? Post after post running The company down and the directors ...Is there a prize for this? by any chance were you bullied at school? This behaviour is bordering OCD. Are you waiting for for recognition to say you were right? If so well done go to the top of the class in parrot study's. It's boring and wasting space. The trick is to make money when you are wrong not pointing the finger and laughing at others misfortune. Move on and get a life. New shareholder and happy. Good luck to all who hold.
Have absolutely no idea what you're on about. First Nickel going bust? First Nickel's appalling sp performance? The Option agreement a lifetime ago? I don't deal in riddles and public schoolboy innuendo. I call it as I see it.
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