Landore Resources Expands BAM Gold Project with Acquisition of Additional Mineral Rights
Why we think this is good
The acquisition of additional mineral rights adjacent to Landore Resources' flagship BAM Gold Project is a positive development, as it provides the company with significant exploration upside and the potential to expand its existing gold resource. While the financial details are not fully disclosed, the transaction is being funded through a share issuance, which reduces funding risk. However, the lack of specific revenue or production figures, as well as the execution risk associated with successfully developing the new mineral rights, tempers the overall sentiment.
Key Points
- Landore Resources acquires additional mineral rights adjacent to its BAM Gold Project in Ontario, Canada
- The BAM Extensions cover an additional 15 kilometres of ground, significantly expanding the company's exploration potential
- The acquisition was funded through the issuance of 13 million new shares, representing a 3.9% dilution to existing shareholders
- The acquired mineral rights are subject to a 2% net smelter return royalty in favor of a third party
Summary
Landore Resources has announced the acquisition of a series of mineral claims (the "BAM Extensions") adjacent to its existing BAM Gold Project in Ontario, Canada. The acquisition was made through the purchase of the entire issued share capital of a British Columbia-based holding company. The BAM Extensions cover an additional 15 kilometres east of Landore's existing Junior Lake property, which includes the BAM Gold Deposit and other precious and base metal prospects. This acquisition represents a significant expansion of Landore's mineral rights and exploration potential for the BAM Gold asset, which currently has a 1.5Moz NI 43-101-compliant resource estimate.