Landore Resources announces equity fundraise, CEO exit

4th Jan 2024 07:41

(Sharecast News) - Shares in AIM-listed Landore Resources dropped on Thursday after the Canada-focused miner unveiled plans to "reset its goals", which involve a £600,000 equity fundraise and the resignation of its chief executive and a non-executive director.

The placing, of 25m new ordinary shares, represents 17% of the company's enlarged issued share capital and the fundraising price of 2.4p was a 22.6p discount to Wednesday's closing price.

The proceeds will be used for general working capital purposes and allow Landore to focus on the advancement of its flagship BAM Gold Project at the Junior Lake property in Northwestern Ontario.

Landore announced in December that, due to "turbulent market conditions worldwide", it was deferring a fundraising to facilitate a proposed dual listing on the Toronto Stock Exchange.

"In light of the termination of the proposed non-brokered private placement in Canada and postponement of the proposed dual listing on the TSX Venture Exchange, as announced on 8 December 2023, and in order to reduce costs and maximise deployment of cash resources on operational activities, the company's CEO, Claude Lemasson, and non-executive director, Larry Strauss, have resigned from their respective positions effective immediately," Landore said.

Finance director Glenn Featherby, who has been named the interim CEO, said: "Despite a period of significant challenges and difficult market conditions, I believe the opportunity exists for the company to reset its goals and restore value for shareholders.

"The board of directors are confident that we will have a year of progress in 2024, with our operational focus being on the company's highly prospective BAM Gold Deposit, seeking to bring the resource to the development stage. We appreciate the continued patience and support of our shareholders during this transition period."

The stock was down 17% at 2.58p by 0814 GMT.