Landore to offload non-core Canadian lithium resource

Landore Resources had secured a deal to offload its Root Lake non-core lithium property in north western Ontario, Canada on Wednesday, to dedicated lithium producer Ardiden.

The AIM-traded firm said the option agreement was subject to a CAD 50,000 deposit (£24,864) on the date of execution.

If the option was to be exercised, Ardiden would be required to pay CAD 150,000 to Landore on the competion date.

It would also issue CAD 150,000 of ordinary shares to Landore on completion, and grant Landore a 3% net smelter royalty from minerals produced from the Root Lake property.

Ardiden would have the option to purchase 50% of the royalty from Landore for a payment of CAD 1m.

Root Lake Lithium was considered a non-core asset by Landore, with a book value of nil. In the 2014 financial year there was nil expenditure on the property.

"We are pleased to pass on our Root Lake property to a dedicated lithium explorer whilst retaining an interest in the property through shares and a net smelter royalty, leaving Landore to remain focused on the development of its highly prospective Junior Lake property", said CEO Bill Humphries in a statement.

The cash consideration to be received by Landore would be applied towards its working capital requirements, Landore confirmed.