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LONDON (Alliance News) - Landore Resources Ltd Friday said it will continue to raise capital from equity markets in order to fund the development of its flagship Junior Lake property following the "outstanding support" shown by shareholders in the subscription that was completed last year.
Landore raised GBP664,320 through a discounted subscription of shares last October, which resulted in its share capital rising by more than a fifth, in order to fund a 2,000 metre drilling programme, but reported a cash balance of GBP368,475 at the end of 2015.
"The group has no debt and will continue to raise further equity as needed to carry out its development plans. Shareholders have been very supportive of the group's financing needs and the directors are confident of raising further funds as required," said Chief Executive William Humphries.
The miner searching and developing gold in Canada said its pretax loss amounted to GBP1.5 million in 2015 compared to the GBP5.7 million loss booked in 2014 after it slashed its costs and managed to avoid booking any impairments.
Landore booked USD3.4 million worth of impairments last year and the absence of those charges in 2015 were the main driver for the narrower loss, but the reduction in exploration costs to GBP859,302 from GBP1.2 million and the fall in administrative expenses to GBP676,325 from GBP1.2 million also contributed.
Work conducted on the Junior Lake property in Ontario during the year led to the discovery of the BAM East gold deposit, and the positive results prompted Landore to carry out additional sampling work on some of the drill holes in February 2016. The latest round of drilling on the deposit managed to extend the prospect by 100.0 metres along strike and 100.0 metres down dip, remaining open to the east and west.
Trenching and sampling work will be carried out on the prospect this year and further drilling is planned for the second half, suggesting any potential fundraising would be in preparation and in order to fund that work if necessary.
At its earlier-stage exploration projects, Landore is currently sourcing quotations to complete a pre-feasibility standard pit design for the b4-7 nickel, copper,cobalt and platinum group metal deposit in Nevada in the US.
When that work is completed and the results have been unveiled, Landore plans to update the resource estimate at the Alpha zone within the deposit.
Landore shares were down 1.3% to 1.78 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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