(Alliance News) - Landore Resources Ltd confirmed on Monday it has sold an 80% interest in the lithium prospects contained within the Junior Lake Project to Green Technology Metals Ltd.
Under the agreement, Green Technology has agreed to pay Landore CAD2.5 million in cash, around USD1.8 million, and CAD1.5 million in cash or shares with payments spread over three years.
Proceeds will be used by Landore for working capital requirements. Should the company receive any shares as part of the deal, they will be sold in an orderly manner, it said.
Chief Executive Bill Humphries said: "Landore's retained 20% interest will allow us to participate in the upside of Green Technology exploration and development success on this highly prospective property."
"In addition, the regular income from this transaction together with the scheduled payments of the Miminiska property will allow Landore to concentrate on advancing our BAM gold deposit through pre feasibility studies and drilling towards development."
Landore also updated investors on its plans for 2023. It intends to focus on advancing the BAM Gold Project, targeting a two-million-ounce resource. The company expects to start pre-feasibility studies in the second quarter to advance the project towards production.
Shares in Landore Resources closed 3.3% lower at 14.02 pence in London on Monday.
By Jeremy Cutler, Alliance News reporter
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Landore (LND)