Landore buys half of remaining smelter return at Lamaune Lake

Landore Resources announced on Monday that its wholly-owned subsidiary Landore Resources Canada has entered into an agreement to acquire half of the 2% net smelter returns royalty that is held on its 90.2%-owned Lamaune Lake Property in Ontario.

The AIM-traded firm explained that in October 2008, Landore Canada entered into an agreement with Stares Contracting, Stephen Stares, Michael Stares and James Dawson, through which it purchased the remaining 20% stake in the Lamaune Lake Property from the vendors.

As part of the agreement, the vendors retained a 2% net smelter return on the eight original Lamaune claims and nine claims staked by Landore Canada, with Landore Canada entitled to purchase half of the 2% net smelter return from the vendors for CAD 1m (£0.59m) in certain specified circumstances.

“Following discussions with the vendors, Landore Canada has elected to purchase half of the vendors' net smelter returns for a reduced price of CAD 0.15m,” the board said in its statement.

“The consideration will be satisfied through a cash payment of CAD 75,000 and the issuance of 227,733 new ordinary shares in Landore Resources, at a price of 19.25p per share.”

Following the agreement, the vendors would remain holders of a 1% net smelter return in the Lamaune Lake Property.

At 0955 BST, shares in Landore Resources were down 0.54% at 19.2p.