Landore Resources looks forward to new drilling and plans share consolidation

 () has highlighted continuing progress at the BAM gold deposit as it posted its full-year results, and separately revealed plans for a share consolidation.

A recent funding move has set the explorer up for new drilling. In June 2020, Landore raised £2.8mln, issuing 414mln shares at a price of 0.675p, to pay for 14,000 metres of drilling in total.

Landore said it intends to complete 3,400 metres of exploration drilling to follow up previously identified gold targets, along with 7,600 metres of infill and extension drilling, and 3,000 metres of depth drilling.

READ: Landore raises £2.8mln for extensive new drilling

“The fundraising puts the group in a position to progress towards establishing a multi-million-ounce gold resource, whilst continuing to explore corporate transactions with a view to maximising shareholder value,” Landore said in its results statement.

In terms of financial results, the pre-revenue company reported a £2.14mln loss for the year ended December 31, 2019, with £107,688 of cash.

Landore also announced plans to consolidate its share capital by reducing the number of shares in issue by a multiple of 20. Every twenty shares held by investors will be transferred into one new share under the plan, which requires shareholder approval.

“The directors believe that the existing share capital structure is no longer appropriate, as the high number of shares in issue combined with the relatively low price per share is thought to result in excess volatility and reduced liquidity in the company’s shares,” Landore added.

“By proceeding with the share consolidation, the directors anticipate that a higher price per share will improve the marketability of the company and could increase interest from institutional investors in the UK and overseas which should improve the liquidity of the company’s shares.”