Landore Resources Ltd on Thursday said it is launching a private placement to raise C$5 million, or £3.0 million.

Landore Resources shares fell 17% to 6.34 pence each on Thursday afternoon in London.

The Ontario, Canada-focused precious and base metal project explorer and developer said it will issue units of the company at C$0.11 each and flow-through units at C$0.12 each, and at C$0.15 to charitable purchasers.

The firm added that each unit is made up of one share and a warrant to purchase an additional share.

Landore said its directors and officers intend to invest a total of C$365,000 through the placing.

The company said it is undertaking the placing in order to enable Landore’s joint listing on the Toronto Venture Stock Exchange, for which it must provide confirmation of a minium working capital and financial resources.

The firm added that the proceeds from the offering will be used of exploration of its BAM gold project in Northwestern Ontario, as well as for general capital.

Copyright 2023 Alliance News Ltd. All Rights Reserved.