Landore Resources follows growing industry trend with Aim float
8 April 2005
Canadian minerals company turns to LG for UK listing.
LG has advised Landore Resources Limited ("Landore"), a company involved in mineral exploration and development in Eastern Canada and the US, on its AIM flotation and simultaneous placing.
The listing was completed following an Arrangement pursuant to the Business Corporations Act (Alberta) whereby the shareholders of Landore Resources Inc. (a Canadian company listed on the TSX Venture Exchange) exchanged their shares for shares in Landore, a newly formed Guernsey company.
Following completion of the Arrangement, Landore Resources Inc. became a wholly owned subsidiary of Landore and was delisted from the TSX Venture Exchange. Landore raised £2 million pursuant to the placing and is capitalised at approximately £6 million.
The transaction was led by corporate finance partner Tom Nicholls, who was assisted by Claire Steel. Tom says: "This deal cements our relationship with the same management team who Lawrence Graham previously advised in connection with the hugely successful Brancote Holdings Plc which was eventually taken over in 2003 at a value of US$368 million. We look forward to assisting Landore with its proposal to establish an offshore natural resources fund later this year."
He adds: "Natural resources continues to be the most active sector on AIM and Landore represents our fourth natural resources flotation in the last 4 months. The comparatively onerous regulatory requirements of the Toronto Stock Exchange and the access to capital funds in London make AIM an attractive option for growing Canadian companies and we anticipate that other Canadian quoted companies may seek to migrate in this way."
Strand Partners Limited acted as Landore's Nominated Adviser and W.H. Ireland as its Broker. Babbe Le Pelley Tostevin and Borden Ladner Gervais LLP advised Landore on Guernsey and Canadian Law respectively.
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Tom Nicholls
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