Landore Resources Ltd on Wednesday said its subsidiary Landore Resources Canada Inc has sold its 100% interest in certain lithium-containing blocks within the Junior Lake Project to Green Technology Metals Ltd.
The Ontario, Canada-focused precious and base metal project explorer and developer said that Green Tech initially entered into an option agreement which gave it the right to acquire 80% interest in the blocks, but noted that Green Tech will now acquire 100% interest.
The firm said Green Tech will pay C$1.0 million, or £602,410, which it expects to receive within a month.
It said Green Tech will also issue 1.6 million new shares to Landore, which will be worth around C$600,000, based on the five-day average from October 2.
Following the sale, Landore will hold 0.6% of Green Tech’s shares, it said.
The firm added that Green Tech will pay a 2.0% net smelter royalty, with the right to repurchase 1.0% of the royalty for C$1.0 million.
Chief Executive Claude Lemasson said: ‘Executing this transaction with GT1 is the next step in optimizing our portfolio of projects for Landore Resources. As our focus is on the BAM Gold Project, where we expect to begin drilling before year-end, this transaction supports the funding of our activities.’
Landore shares fell 1.1% to 8.90 pence each on Wednesday afternoon in London.
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