Landore Resources expands BAM Gold Project with key mineral rights acquisition

Landore Resources Limited has taken a significant step in expanding its presence in Ontario’s gold mining sector with the acquisition of additional mineral rights near its flagship BAM Gold Project. This latest transaction, executed through its subsidiary, Landore Resources Canada, Inc., strengthens the company’s control over a highly prospective gold-bearing region at the Junior Lake property. The newly acquired mineral claims, referred to as the BAM Extensions, add to Landore Resources’ already extensive landholding in Northwestern Ontario, reinforcing its long-term exploration and development strategy.

The acquisition was completed through the purchase of British Columbia-based holding company 1491205 B.C. Ltd., a subsidiary of Halyard Consulting SAGL, in exchange for 13 million new ordinary shares in Landore Resources, issued at a price of 3.05 pence per share. This deal not only secures additional exploration ground but also aligns with Landore Resources’ broader objective of advancing BAM Gold towards pre-feasibility and enhancing its overall project economics.

What Is the Strategic Importance of the BAM Gold Project?

The BAM Gold Project is a cornerstone asset for Landore Resources, holding an NI 43-101 compliant resource estimate of 1.5 million ounces of gold. This includes 1.03 million ounces in the indicated category, with an average grade of 1.0 grams per tonne, and an inferred resource of 467,000 ounces at 0.8 grams per tonne. These figures position BAM Gold as a promising mid-tier gold project within Ontario, a province that accounted for 41% of Canada’s total gold production in 2023.

According to the company’s 2022 Preliminary Economic Assessment, BAM Gold has an estimated net present value (NPV) of $333.6 million at a gold price of $1,800 per ounce. By securing the BAM Extensions, Landore Resources expands its footprint along the mineral-rich Junior Lake shear zone, a structure known for its high gold prospectivity. With this additional land package, the company is now better positioned to conduct exploration and resource expansion activities, enhancing the long-term value of its flagship asset.

How Will the BAM Extensions Impact Landore Resources’ Future Exploration?

The BAM Extensions cover a 15-kilometre stretch east of Landore Resources’ existing Junior Lake property, which already hosts not only the BAM Gold Deposit but also the B4-7 Nickel-Copper-Cobalt-PGE Deposit and other precious and base metal prospects. With this acquisition, the company now holds over 45 kilometres of prospective ground along a key geological structure.

Importantly, the newly acquired claims contain an extension of the Junior Lake shear zone, a well-established gold-bearing corridor that has yielded strong exploration results in the past. This extension provides additional high-priority exploration targets and could contribute to further increasing BAM Gold’s overall resource estimate.

Landore Resources has already launched a 3,500-metre drilling program at BAM, with results expected in the third quarter of 2025. These findings will be incorporated into an updated mineral resource estimate, potentially increasing the scale and economic viability of the project.

What Are the Key Terms of the Acquisition?

As part of the agreement, Halyard Consulting SAGL has agreed to a lock-up provision covering 75% of the consideration shares issued in the transaction. These restrictions will gradually lift in 25% increments every six months following the completion of the deal, ensuring an orderly distribution of shares in the market.

Additionally, the BAM Extensions remain subject to a 2% net smelter return royalty held by a third party. This royalty obligation will be factored into Landore Resources’ long-term financial planning as the company progresses toward feasibility studies and project development.

How Has Landore Resources’ Stock Reacted to the News?

Landore Resources trades on the AIM market of the London Stock Exchange under the ticker symbol LND. As of March 24, 2025, the company’s stock closed at 3.10 GBX, reflecting a 1.64% gain from its previous trading session. Over the past year, the stock has risen by 49.40%, driven by increased investor interest in gold exploration projects. However, it has declined by 21.52% in the last three months, reflecting broader market fluctuations and investor caution regarding junior mining stocks.

Technical analysis currently signals a “strong sell” rating, with some analysts considering the stock overvalued at current levels. This sentiment suggests that, while Landore Resources’ long-term prospects may be promising, short-term market conditions could present headwinds for investors. The stock’s 52-week range fluctuates between 2.00 GBX and 6.00 GBX, highlighting the volatility in junior mining equities.

What Are the Next Steps for Landore Resources?

With the BAM Extensions now under its control, Landore Resources is focusing on exploration activities aimed at unlocking additional gold resources. The company is expected to provide updates on its ongoing drill program and revised mineral resource estimate later in 2025.

Beyond BAM Gold, Landore Resources also holds a diversified portfolio of precious and battery metals projects across Canada and the United States. As demand for critical minerals continues to grow, the company may explore strategic options to monetize its non-core assets while prioritizing the advancement of its flagship gold project.

Landore Resources’ CEO, Alexander Shaw, noted that securing these additional mineral rights represents a vital step in the company’s long-term strategy. He stated that the acquisition enhances exploration upside and strengthens the company’s commitment to developing BAM Gold into a pre-feasibility stage project.

As the junior gold sector continues to attract interest, particularly amid fluctuating gold prices, Landore Resources’ ability to deliver exploration success and demonstrate strong project economics will be key factors in determining its future valuation and investor sentiment.