(Alliance News) - Landore Resources Ltd on Friday said it annual losses narrowed and announced it will be undertaking a share capital consolidation process in August.
In the year ended December 31, 2019, the mineral exploration and development company saw its pretax loss narrow to GBP2.1 million from GBP2.8 million in the year prior.
The company raised GBP225,000 in January, GBP260,000 in April and GBP2.8 million in July.
The fundraising will go towards the completion of 3,400 meters of exploration drilling, 7,600 metres of resource infill and extension drilling, 3,000 metres of depth drilling and infill soil sampling from Felix Lake to the BAM gold project to include ground geophysics and soil sampling.
Landore Resources said: "These funds, together with other potential financings, are sufficient to meet the planned operational expenses and working capital for a further twelve months.
Landore Resources also announced a proposed share capital consolidation.
This would reduce the number of issued shares by a multiple of 20, which the company expects would increase the trading price of the resulting shares proportionally.
Landore Resources believes the share consolidation will improve market liquidity as well as trading activity in the company's shares.
The share consolidation process will see the company issuing a number of shares, to be conditionally issued on August 20, which will make their total number of issued shares exactly divisible by 20. Landore resources currently has 1.8 billion shares in issue. After the issuance of new shares, the process will see the consolidation of every 20 existing issued shares into one new share, effectively dividing the company's shares by 20.
The number of issued shares after the consolidation process is expected to be 90 million shares.
Landore shares were down 6.4% at 1.10 pence each on Friday afternoon in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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