Landore Resources, a London-listed mining company, has announced their plans to raise up to £3.0 million ($3.7 million) through a share issue. The funds will be allocated towards exploration at their BAM gold project in Northwestern Ontario and for general working capital purposes.
As a result of this announcement, Landore Resources shares experienced a 16% decline. At 0903 GMT, shares were down to 6.35 pence, a decrease of 1.25 pence.
The share issue will consist of units which include one new ordinary share and one warrant, priced at 0.65 pence each. In addition, flow-through units will be issued at 0.71 pence each, along with charity flow-through units at 0.91 pence each. Both the flow-through units and the charity flow-through units will include one new ordinary share and one warrant.
The warrants will allow owners to purchase one new ordinary share at a rate of 1.65 Canadian cents for up to two years.
Landore Resources has stated that the directors and officers of the company plan to invest C$365,000 ($264,579) in this offering.