Landore Resources raises £3.15m in big share issue

Landore Resources announced on Friday that it has raised gross proceeds of £3.15m through a placing and subscription of 210 million new ordinary shares, at a price of 1.5p each, with new and existing institutional investors.

The AIM-traded firm als issued of 210 million warrants.

It said a total of 196 million new ordinary shares were placed with institutional investors, and a total of 14 million were subscribed for by certain existing investors, together raising net proceeds of £3.15m.

The holders of the new ordinary shares would be issued one warrant to subscribe for one ordinary share for every one new ordinary share acquired by them, the board explained.

The new shares would represent, in aggregate, approximately 20.1% of the company's enlarged issued ordinary share capital immediately following admission.

“The net proceeds of the fundraising will allow the company to complete a 12,000 metre drilling programme aimed at advancing the existing BAM East Gold deposit to a one million ounce gold resource, and completion of technical and preliminary economic assessment thereon,” the board explained in its statement.