Landore Resources Canada to sell its interest in lithium claim blocks to GT1

LONDON, UK: Landore Resources Canada Inc. has executed a sale and purchase agreement to dispose of its 100 per cent interest in certain tenements which contain Lithium prospects, located within the Junior Lake Project to ASX-listed Green Technology Metals Limited (GT1).

On 6 March 2023, Landore Resources announced that Landore Canada had entered into an option agreement with GT1, which provided GT1 with the right to purchase an 80 per cent. interest in the Lithium Claim Blocks.

Under the terms of the agreement, GT1 will now acquire 100 per cent of the Lithium Claim Blocks and upon completion, the Option Agreement will be terminated. The key terms of the Agreement are set out below:

GT1 will pay Landore Canada a cash payment of C$1,000,000 (£602,410); Share based consideration, comprising the issuance of 1,628,624 new ordinary shares in GT1 to Landore Resources, which has a value of approximately C$600,000.

GT1 will also assume and be bound to satisfy the existing 2.0% Net Smelter Royalty and obtain rights to repurchase 1.0% of the existing royalty upon payment of C$1,000,000, which currently covers the Swole Lake project (comprised of 9 mineral claims within Junior Lake located in and around the Swole Lake lithium occurrences).

The Cash Consideration received by Landore Resources will be applied towards the Company’s working capital requirements. On receipt of the new shares in GT1, it is the Company’s intention that these will be disposed of in an orderly manner in due course.

Claude Lemasson, Chief Executive Officer of Landore Resources, today commented: “Executing this transaction with GT1 is the next step in optimizing our portfolio of projects for Landore Resources. As our focus is on the BAM Gold Project, where we expect to begin drilling before year end, this transaction supports the funding of our activities. We will continue to provide regular updates to the market as we progress at BAM.”