Landore Resources raises £2m to fund gold exploration in Canada

AIM-listed miner Landore Resources has raised £2m (CA$3.3m) in order to fund gold exploration at its Canadian mine.

On 17 February, the company said it wanted to raise between £3m to £4.5m, but after consulting with existing and potential shareholders it agreed to a smaller amount to maximise shareholder value.

The money raised will be used to finance drilling and exploration at the BAM east gold deposit in Ontario and for working capital.

Landore raised £2m from a subscription of 74.07m shares at a price of 2.7p each, which represents about 7.5% of the closing middle market price of 2.92p on Thursday.

The new shares represent about 9.5% of the company's issued share capital and are expected to be admitted to trade on AIM on 13 March. Following admission, the company will have a share capital of 781.56m shares with voting rights.

Chief executive Bill Humphries said: "The directors and management are delighted with the strong support for this fundraise by both existing and new investors.

“Drilling is scheduled to commence in early April on the BAM east gold deposit aimed at upgrading and expanding the newly defined resource with further exploration along the highly prospective Junior Lake Shear."

Shares in Landore Resources were down 1.03% to 2.89p at 0807 GMT.