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06 March 2023
Landore Resources Limited (“Landore Resources” or “the Company”) is pleased to confirm that the Company’s 100% owned subsidiary Landore Resources Canada Inc. has entered into an option agreement with Green Technology Metals Limited (“GT1”) which provides GT1 with the right to purchase an 80 per cent. interest (the “Option”) in certain tenements which contain Lithium prospects, located within the Junior Lake Project, (the “Lithium Claim Blocks”).
Under the terms of the Option, GT1 has the right to purchase an 80 per cent. interest in the Lithium Claim Blocks, which comprise 591 staked mineral claims for 10,856 hectares, in return for staged payments over three years to Landore (“Staged Payments”) totalling C$2,500,000 in cash and an additional C$1,500,000 either in cash or by issuing Landore with new common shares in GT1 as set out below:
The consideration received by the Company pursuant to the Option agreement will be applied towards Landore’s working capital requirements. In the event Landore receives new shares in GT1 as consideration, it is the Company’s intention that these will be disposed of in an orderly manner in due course.
Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:
“The Directors are extremely pleased to have concluded this transaction with Green Technology Metals, our near neighbor of Junior Lake, for the option to explore and advance our northern Lithium Claims. Landore’s retained 20% interest will allow us to participate in the upside of GT1 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.”
Subject to the Staged Payments being made in line with the above schedule, Landore will transfer the 80% Option Interest to GT1, and Landore and GT1 will be associated in an unincorporated joint venture in respect of the project (“JV”) where GT1’s initial interest in the JV will be 80% and Landore’s shall be 20%, on the terms set out below.
GT1’s Proposed Exploration Program for the Lithium Claim Block
GT1 owns a portfolio of lithium exploration claims in north-west Ontario, nearby to the Junior Lake Property. GT1 plans to undertake a two-phase exploration program at the Junior Lake Property commencing in June 2023. Phase one exploration will initially consist of geological mapping and sampling of the Despard and Swole target areas to identify additional drill targets at the property and will be followed by a phase two maiden 1200m diamond drilling program initially focusing on the Despard target area. The two-phase program is anticipated to commence in Q3, subject to approvals, and to be completed by Q4 2023.
The Junior Lake Property
The Junior Lake Property, 100% owned by Landore Resources, together with the contiguous Lamaune Iron property (90.2% owned) (jointly the “Junior Lake Property”), consisting of 33,029 hectares, is located in the province of Ontario, Canada, approximately 235 kilometers north-northeast of Thunder Bay and is host to: the BAM Gold Deposit; the B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit; the VW Nickel-Copper-Cobalt Deposit; Lamaune Gold Prospect; Lamaune Iron Prospect and numerous other precious and base metal occurrences.
The Lithium Claim Block, which is located in the northern part of the Junior Lake Property, consists of 10,856 hectares and hosts a number of lithium-bearing pegmatites, with three drill-ready prospects identified from historic exploration activity:
As an exploration asset, the Lithium Claim Block currently generates no revenues or profits and at 31 December 2022, for accounting purposes, had a book value of nil.
Landore’s plans for 2023
Landore will continue to focus on advancing its highly prospective BAM Gold Project, targeting a two-million-ounce resource, which is expected to concentrate on:
Further information on the property is available on Landore’s website www.landore.com.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer
Tel: 07734 681262
Glenn Featherby, Finance Director
Tel: 07730 420318
Cenkos Securities (Nominated Advisor and Broker)
Derrick Lee / Peter Lynch
Tel: 0131 220 9100
Green Technology Metals Limited (ASX:GT1)
GT1 is a North American focussed lithium exploration and development business with a market capitalisation of approximately A$171 million. The Company’s 100% owned Ontario Lithium Projects comprise high-grade, hard rock spodumene assets (Seymour, Root and Wisa) and lithium exploration claims (Allison and Solstice) located on highly prospective Archean Greenstone tenure in north-west Ontario, Canada.
All sites are proximate to excellent existing infrastructure (including hydro power generation and transmission facilities), readily accessible by road, and with nearby rail delivering transport optionality.
Seymour has an existing Mineral Resource estimate of 9.9 Mt @ 1.04% Li2O (comprised of 5.2 Mt at 1.29% Li2O Indicated and 4.7 Mt at 0.76% Li2O Inferred).1 Accelerated, targeted exploration across all three projects delivers outstanding potential to grow resources rapidly and substantially.
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