Source - RNS
RNS Number : 9985K
Landore Resources Limited
28 September 2016
 

28 September 2016

 

Landore Resources Limited

("Landore Resources" or the "Company")

 

Interim Results for the six months ended 30 June 2016

 

 

Landore is pleased to announce its interim results for the six months ended 30 June 2016.

 

 

For more information, please contact:

 

Bill Humphries, Chief Executive Officer

Richard Prickett, Finance Director

Landore Resources Limited

Tel: 07734 681262

Tel: 07775 651421

www.landore.com

 

James Spinney / Jack Botros

Strand Hanson Limited

Nominated Advisor and Broker                                                                                                                                                                                                                   

Tel: 020 7409 3494

 

 

Copies of the Interim statement are available on the website, www.landore.com 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2016 to 30 June 2016.  All amounts are stated in sterling.

 

Overview

Landore Resources Limited ("Landore Resources" or the "Company") is quoted on the AIM market of the London Stock Exchange, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

 

Results of Operations

The financial results for the six months to 30 June 2016 show a loss of £732,975 (2015: loss £1,180,977). These results were in line with expectations, substantial savings have been made in relation to administration costs which included a non-cash charge of £245,864 relating to the grant of share options.  Exploration costs were £250,108 (2015: £466,518).

 

During the period under review £1,228,831 (2015: £nil) was raised from the issue of shares. In addition the sale of the Root Lake project, which completed on 11 July 2016, has raised a total of approximately C$330,000 (approximately £196,000).

 

As a result, the Group has been able to fund and make plans for follow up drilling in October 2016, further details are set out below.

 

Operations

The focus in the first half of 2016 has been almost entirely focused on the BAM East Gold prospect on the Company's Junior Lake Property in Ontario, Canada ("BAM East Gold Prospect").

 

The Junior Lake property:

The Junior Lake Property, 100% owned by Landore Resources, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to the B4-7 Nickel-Copper-Cobalt-PGEs resource plus the Exploration Target and the Alpha Zone, the VW Nickel resource and numerous other highly prospective mineral occurrences including the BAM gold zone and the newly discovered BAM East Gold Prospect.

 

BAM East Gold Prospect:

This new gold prospect is located approximately midway along a 2.7 kilometre long, east-southeast to west-northwest trending MaxMin geophysical anomaly ("MM-7"), at the western end of which is located the historical BAM gold zone discovered by Landore Resources in 2003.  MM-7 had not previously been drill tested.

 

On 14 March 2016 Landore Resources announced that drilling had intersected a significant new gold zone, since then a substantial amount of exploration and drilling has taken place.

 

Drilling results from the summer drilling campaign, completed on 5 September 2016, have reported wide zones of near surface gold mineralisation with drill-hole 0416-541 reporting 56.86 metres (m) at 1.60 grams/tonne gold (g/t) including 4.00m at 5.17g/t gold and drill-hole 0416-535 reporting 53.5 m at 1.38g/t including 9m at 4.74g/t and 1m at 30.6g/t gold.

 

The drilling has successfully extended the BAM East Gold Prospect for a distance of 500 metres along strike from 2200E to 2700E and to a vertical depth of 150 metres. The prospect remains open along strike to the east and west and down dip. 

 

Full details of the drilling results are set out in the press releases displayed on the Company's website, www.landore.com.

 

In addition to the drilling a trenching and channel sampling programme has been completed along MM-7 and along the parallel geophysical anomaly ("MM-18") located approximately 200 metres to the North of MM-7. Results from the sampling are currently being received and collated and will be released when completed.

 

BAM East gold mineralisation is a typical shear-hosted gold-bearing system in an Archaean greenstone belt. Findings from exploration drilling on the BAM East Gold Prospect has revealed a lithological sequence consisting of leucogabbro to the south, metasedimentary rocks in the central portion, to mafic volcanics to the north. All lithological units have been subjected to variable shearing and deformation, markedly the metasedimentary unit.

 

The gold mineralisation revealed to-date is predominantly contained in the metasediments, with some gold mineralisation occurring in the leucogabbro rocks. Visible gold occurs within or near quartz veinlets which are controlled by a shear system.

 

Planned Works:

Landore Resources is planning a follow-up drilling programme, scheduled to commence in early October, to extend the new gold zone down dip and along strike to the east and west and to obtain material for metallurgical testing.

 

Consulting Engineers RPA Inc. ("RPA") of Toronto, Canada, have been retained by Landore Resources with the view of completing an initial Mineral Resource estimate on the Bam East Gold Prospect.

 

Lithium

Landore Resources is currently reviewing its lithium prospects on the highly prospective Junior Lake Property including the historic Despard pegmatite, the Swole Lake pegmatite and the Tape Lake pegmatites both of which were discovered by Landore.

 

In addition the Root Lake project was sold during the period to Ardiden, an Australian Lithium explorer. Landore Resources received C$200,000 (approximately £117,500) consideration plus approximately 7.5 million Ardiden shares which have been sold raising a further AUD134,261 ( approximately £79,000). Landore Resources has been granted a 3% net smelter royalty from minerals produced from Root Lake.

As set out above, the cash proceeds from this disposal have enabled Landore Resources to plan and fund its October drilling programme.

 

For further information on Landore Resources and its projects please visit the website, www.landore.com.

 

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

                                                                                                                                                             Group                             Group

                                                                                                                                     Six months ended     Six months ended

                                                                                                                                                30 June 2016                30 June 2015

                                                                                                                  Notes                                             £                                       £

 

Exploration costs

2


(250,108)


(466,518)

 

Other income



26,182


-

 

Administrative expenses



(508,340)


(715,773)

 







 

Operating loss



(732,266)


(1,182,291)

 







 

Finance income

Interest payable



-

(709)


    1,314

-

 







 

Loss before income tax



(732,975)


(1,180,977)

 







 

Income tax expense



-


-

 






 

Loss for the period



(732,975)


(1,180,977)

 

 

Other comprehensive (loss)/income:






 

Exchange difference on translating foreign






 

operations



(10,837)


233,520

 

Other comprehensive (loss)/income for the year






 

 net of tax



(10,837)


233,520

 







 

Total comprehensive loss for the period



(743,812)


(947,547)

 







 

Loss attributable to:






 

Equity holders of the Company



(732,975)


(1,180,977)

 

 

Total comprehensive loss attributable to:






 

Equity holders of the Company



(743,812)


(947,457)

 







 

Loss per share attributable to the






 

equity holders of the Company during the year






 







 

- basic & diluted

3


(£0.001)


(£0.002)

 






 

 

The Group's operating loss relates to continuing operations.

 

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.



LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 


Share

capital

£

Share

premium

£

Share

options

£

 

 

Warrants

 

£

Retained

earnings

£

Cumulative

translation

reserve

£

Total

£

Balance at
1 January 2015

5,174,838

28,084,421

858,018

 

33,691

(32,839,649)

(308,851)

1,002,468

Loss for the year

-

-

-

-

(1,180,977)

-

1,180,977

Other comprehensive losses in the year

-

-

-

-

-

233,520

233,520

Issue of ordinary share capital

-

-

-

-

-

-

-

Issue costs

-

-

-

-

-

-

-

Share option adjustment

-

-

-

-

-

-

-

Balance at
30 June 2015

 

5,174,838

 

28,084,421

 

858,019

 

33,690

 

(34,020,626)

 

(75,331)

 

55,011

 

Balance at
1 January 2016

6,282,038

27,627,990

858,019

33,690

(34,374,928)

(305,470)

121,339

Loss for the year

-

-

-

-

(732,975)

-

(732,975)

Other comprehensive gains in the year

-

-

-

-

-

(10,837)

(10,837)

Issue of ordinary share capital

725,929

502,901

-

-

-

-

1,228,830

Change in nominal share value

28,130,891

(28,130,891)





-

Share options issued

-

-

245,864

-

-

-

245,864


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
30 June 2016

 

35,138,858

 

-

1,103,883

 

33,690

 

(35,107,903)

 

(316,307)

 

852,221

 


The accounting policies and notes on pages 8 and 9 form part of these financial statements.



LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016

 

 

                                                                                                                   Group                               Group                               Group

                                                                                                                      As at                                  As at                                  As at

                                                                                                      30 June 2016                  30 June 2015       31 December 2015

                                                                          Notes                                       £                                          £                                          £

Assets












Non current assets






Property, plant and equipment



35,480

43,733

35,782

Investments



-

-  

-










35,480

43,733

35,782

Current assets






Trade and other receivables            



19,070

19,780

37,346

Cash and cash equivalents



944,544

208,304

368,475










963,614

228,084

405,821







Total assets



999,094

271,817

441,603







Equity












Capital and reserves attributable to the Company's equity holders






Share capital

4


35,138,858

   5,174,838

 6,282,038

Share premium

4


-

28,084,421

27,627,990

Share options reserve



1,103,883

858,019

858,019

Warrants reserve



33,690

33,690

33,690

Retained earnings

5


(35,107,903)

(34,020,626)

(34,374,928)

Cumulative translation adjustment



(316,307)

   (75,331) 

(305,470)







Total equity



852,221

   55,011

121,339







Liabilities












Non current liabilities






Income tax liabilities



-

-

  -  




-

-

-







Current liabilities






Trade and other payables                          



112,536

185,904

291,038

Income tax liabilities



34,337

30,901

  29,226




146,873

216,806

320,264













Total liabilities



146,873

216,806

320,264







Total equity and liabilities



999,094

271,817

441,603

 

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.



LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 



Group

Six months ended

30 June 2016

£

Group

Six months ended

30 June 2015

£

Cash flows from operating activities




Operating loss


(732,975)

(1,180,977)

Finance income


-

1,314

Depreciation of tangible fixed assets


6,002

6,096

Foreign exchange (loss)/gain on non-cash items


(12,940)

236,831

Share option charge


245,864

-

Decrease in receivables


21,636

6,739

(Decrease)/Increase in payables


(198,624)

 

67,215

 

Net cash outflow from operating activities


(671,037)

(862,782)

Cash flows from investing activities




Purchase of property, plant and equipment


-

-



-

-

Cash flows from financing activities




Issue of ordinary share capital


1,228,830

-

Issue costs


-

 

-

 

Net cash inflow from financing activities


1,228,830

-





Net increase/(decrease) in cash and cash equivalents


557,793

(862,782)

Cash and cash equivalents at beginning of period


368,475

1,072,249

Exchange gain/(loss) on cash and cash equivalents


18,276

 

(1,163)

 

Cash and cash equivalents at end of period


944,544

 

208,304

 

 

 

The notes and accounting policies on pages 8 and 9 form part of these interim financial statements.



LANDORE RESOURCES LIMITED

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

1          Basis of accounting and accounting policies

 

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (September 2016).  The Directors have elected not to apply IAS34 Interim Financial Reporting.

 

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2015.

 

 

2          Exploration expenditure and mineral properties

               

                                                                                                                                    Net         Accumulated                                   

                                                                                     1 January           Expenditure          expenditure

                                                                                               2016                 in period          30 June 2016                                                           £                £                                                                                   £                                   

 

Junior Lake/Lamaune Lake

16,296,167


243,875


16,540,042

Miminiska Lake

1,519,976


1,795


1,521,770

Lessard

80,327


209


80,536

Frond Lake

61,558


1,016


62,574

Wottam

696,965


-


696,965

Other/including Swole Lake and West Graham

65,999


3,213


69,212








18,720,992


250,108


18,971,099

 

                Mineral properties at 30 June 2016 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

 

 

3          Loss per share

 

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 634,924,131 (2015: 517,483,825).

 

Diluted loss per share

 

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly, there is no difference between the basic and dilutive loss per share.

 

 

 

 

 

4          Share capital

                                                                                                                                                                     30 June             1 January 

                                                                                                                                                                           2016                       2016

                                                                                                                                                                                  £                              £

 

Issued:

700,488,001 (2015: 628,203,825) ordinary shares at nil par value (2015: £0.01 each)


 

 

35,138,858


 

 

6,282,037

 

On 17 June 2016, 71,843,000 ordinary shares were issued at a price £0.017 each as part of a share subscription raising £1,228,831.

 

A further 441,176 ordinary shares were issued on 27 June 2016 at £0.017 per share in settlement of a payable of £7,500.

 

During the period, the par value of ordinary shares was redenominated from £0.01 per share to nil. 

 

Following the redenomination, all amounts received upon issue of shares, net of issue expenses or commissions, have been recognised as share capital in accordance with applicable law in Guernsey.

                                                                                                   

                                                                                                                                                                    Share                        Share

                                                                                                                                                                  capital                 premium

                                                                                                                                                                       2016                           2016

                                                                                                                                                                              £                                  £






At 1 January 2016

Ordinary shares issued

Redenomination of par value

 

 

At 30 June 2016


6,282,038

725,929

28,130,891


27,627,990

502,901

(28,130,891)

 

 

35,138,858

 

_

 

 

 

5          Profit and loss reserve

                                                                                                                                                                                                 £






At 1 January 2016




(34,374,928)

Loss for the period




(732,975)






At 30 June 2016




(35,107,903)

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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