LONDON (Alliance News) - Landore Resources Ltd Monday said it has raised GBP2.6 million through an oversubscribed placing and subscription, money it will use to fund a 6,000 metre drilling programme to test prospective targets it identified in a previous 3D survey at its Junior Lake property in Ontario, Canada.
In a statement, the company said it issued 36.6 million shares in the placing and 67.4 million shares in the subscription, both at 2.5 pence each, which is a 20% discount to the closing middle market price of 3.125 pence on July 4. The new shares make up about 20.1% of the company's enlarged share capital.
"The directors are very pleased with the high level of support given to Landore with this fundraise by both existing and new shareholders. We are now fully funded and the additional funds from the oversubscription will all be put into the ground with follow up drilling on our exciting geophysical anomalies between the B4-7 and VW nickel deposits," Chairman Bill Humphries said.
Landore Resources shares were down 12% at 2.75 pence early Monday, the second-biggest decline on the AIM All-Share.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Landore (LND)