Landore Regulatory News (LND)

6 Apr 2005 08:55

Landore Resources Limited06 April 2005 6 April 2005 Landore Resources Limited Admission to AIM Placing of 28,571,429 Ordinary Shares at 7 pence per share Landore Resources Limited ("Landore" or "the Company" or, together with itssubsidiaries, "the Group"), which is involved in mineral exploration anddevelopment, predominantly in Eastern Canada, announces the admission today ofits ordinary shares of 1p each in the Company ("Ordinary Shares") to trading onAIM under the ticker symbol LND.L. Landore has raised £2 million gross (£1.625 million net of expenses) through theplacing of 28,571,429 new Ordinary Shares ("Placing") at 7 pence per share("Issue Price") to certain of the Directors, institutions and other investors.Based on the total number of shares in issue of 85,881,310, Landore iscapitalised at approximately £6 million, at the Issue Price. Strand PartnersLimited is acting as the Group's Nominated Adviser and W.H. Ireland as itsBroker. Enquiries, please contact: William Humphries/Richard PrickettLandore Resources Limited020 7409 7444 Simon Raggett/Angela PeaceStrand Partners Limited020 7409 3494 This announcement does not constitute, or form part of, any offer or invitationto sell, allot or issue, or any solicitation of any offer to purchase orsubscribe for, any securities, nor shall it (or any part of it) or the fact ofits distribution form the basis of, or be relied upon in connection with, or actas any inducement to enter into, any contract or commitment for securities,which should only be made on the basis of information contained in the admissiondocument issued in connection with the Placing. Notes to editorsKEY INFORMATION Introduction and History Landore is the holding company of Landore Resources Inc ("Landore Canada"), aCanadian based company engaged in mineral exploration and development, with thepresent focus of its operations being mineral exploration in Ontario, Quebec andNew Brunswick, Canada. Landore Canada's principal properties are the "JuniorLake Property" and the "Miminiska Lake Property", both located in the ThunderBay Mining District, Ontario, Canada. Landore Canada is also the owner of otherproperties in Canada containing gold and base metal drill intersections. Landore is a newly incorporated company, formed in February 2005 for the purposeof effecting a court approved arrangement ("Arrangement") with Landore Canadapursuant to which the Company's shares have been admitted to trading on AIM.Pursuant to the Arrangement all of the Landore Canada shareholders haveexchanged the shares that they held in Landore Canada for Ordinary Shares in theCompany and the Company is now the sole shareholder of Landore Canada. Landore Canada was incorporated in March 1996 and has a wholly owned subsidiary,Brancote US Inc, which holds 10 mineral properties in Nevada in the US. Theseproperties include grass roots exploration areas as well as defined drilltargets. Landore Canada has financed its activities to date principally througha series of private placements. The funds previously raised by Landore Canadahave been used to finance exploration and development activities on LandoreCanada's properties in Canada and the US. Strategy and Prospects The Group's objective is to become a successful mineral explorer and createcapital growth for Shareholders through the discovery of economic mineraldeposits. Landore Canada will continue to focus on the continuing exploration of theJunior Lake Property and the Miminiska Lake Property. The funds raised inconnection with the Placing will be used to explore and develop Landore Canada'sproperties and fund the Group's general and administrative expenses. During the second half of 2005, the Directors intend to establish a naturalresources fund administered from an offshore jurisdiction and managed by theGroup. The objectives of the fund will be to identify development stage projectsin the natural resources sector that are possibly, but not exclusively, seekinga flotation onto AIM. The Directors believe that with their background and trackrecord in the natural resources sector and network of contacts they are wellplaced to launch such a fund and to add significant value to any suchinvestments. It is intended that Landore would receive fees and performancerelated remuneration in return for the management and administration of theproposed natural resources fund. Background to and reasons for Admission Given that the majority of Landore Canada's shareholders were based in the UKand Europe and in light of the executive management's experience in London,specifically through AIM listed companies, the Board decided to de-list theshares in Landore Canada from the TSX-V, to implement the Arrangement and toapply for the Ordinary Shares to commence trading on AIM. The Board believes that admission of the Company's shares to trading on AIM willprovide a number of benefits to Shareholders, including the opportunity to raisefurther exploration funds in the future. Whilst the Company has no current plansfor raising additional capital following completion of the Placing, it ispossible that it will seek to raise further funds in the future. The Board also believes that a listing on AIM will result in greaterinstitutional support being available to the Company and better retailshareholder interest, which in turn will improve liquidity in the Company'sOrdinary Shares, providing a mechanism for shareholders to realise value andtrade their shares if they so wish. Details of the Placing So as to provide additional funding for the ongoing working capital requirementsof the Group and for further exploration and development expenses on in respectof the Miminiska Lake and Junior Lake properties which the Company expects toincur, the Company has raised £2 million gross (£1.625 million net of expenses)by the issue of 28,571,429 Ordinary Shares ("Placing Shares") pursuant to thePlacing. The Company's brokers, W.H. Ireland, have placed the Placing Shares with certainof the Directors and institutional and other investors at the Issue Price.William Humphries (Chairman), Richard Prickett (Chief Executive Officer) andCharles Wilkinson (Non-executive Director) have subscribed for, in aggregate,4,142,857 Placing Shares pursuant to the Placing, representing an aggregateinvestment by the Directors of £290,000, at the Issue Price. The Placing Sharesrepresent 33.3 per cent. of the enlarged issued share capital of the Company. Exchange procedures, admission, settlement and dealings The Directors have applied for the Ordinary Shares to be admitted to CREST witheffect from today and CRESTCo has agreed to such admission. Accordingly,settlement of transactions in the Ordinary Shares may take place within theCREST system if the relevant shareholder so wishes. CREST is a paperlesssettlement procedure enabling securities to be evidenced other than bycertificate and transferred other than by written instrument. CREST is a voluntary system and holders of Ordinary Shares who wish to receiveand retain share certificates will be able to do so. Any share certificate which represented an outstanding share in Landore Canadathat has been exchanged for an Ordinary Share has ceased to represent a claim orinterest of any kind or nature against Landore Canada and now represents onlythe right to receive share certificates for the Ordinary Shares. Formershareholders in Landore Canada are now entitled to receive share certificates inrespect of the Ordinary Shares to which such holders are entitled. The OrdinaryShares will be registered in the names of the relevant shareholders and it isexpected that certificates in respect of the Ordinary Shares will be dispatchedto relevant Shareholders by first class post at their own risk by 15 April 2005or, if appropriate, delivery will be made to their CREST accounts. Pending the issue of definitive share certificates in respect of the OrdinaryShares (other than in respect of those shares settled through CREST), transferswill be certified against the register. Copies of the AIM admission document are available to the public free of chargeduring normal business hours on any day (Saturdays, Sundays and public holidaysexcepted) at the registered office of Landore at La Tonnelle House, Les Banques,St. Sampson, Guernsey GY1 3HS and at the offices of Lawrence Graham LLP, 190Strand, London WC2R 1JN for a period of one month. This information is provided by RNS The company news service from the London Stock Exchange