Business
Debt Settlement Agreement with Lamaune Iron Inc.
Debt Settlement Agreement with Lamaune Iron Inc..
About this update from Landore Resources Limited
[{"type":"text","content":"\n \nRNS Number : 5046Q Landore Resources Limited 13 September 2017 \n\n13 September 2017\nLandore Resources Limited\n(\"Landore\" or the \"Company\")\n \nDebt Settlement Agreement with Lamaune Iron Inc.\n \nLandore is pleased to announce that its wholly owned subsidiary, Landore Resources Canada Inc. (\"Landore Canada\"), has today entered into a debt settlement agreement (\"Debt Settlement Agreement\") with Lamaune Iron Inc. (\"Lamaune\").\n \nPursuant to the Debt Settlement Agreement, Lamaune has agreed, conditional on its own shareholder approval, to issue to Landore Canada 576,192,087 common shares in the capital of Lamaune, in full satisfaction of the loan receiveable from Lamaune.\n \nFollowing the issue of the shares, Landore Canada will hold 90.2% of the issued shares of Lamaune.\n \nBackground\nIn June 2011, Landore demerged certain of its mining claims and assets relating to the Lamaune iron ore and gold deposits (the \"Lamaune Assets\") by means of a distribution in specie of the entire issued share capital of Lamaune to the then current shareholders of Landore and the transfer of the Lamaune Assets to Lamaune from Landore Canada (the \"Original Transaction\"). Prior to effecting the Original Transaction, Lamaune, which had been formed specifically for purposes of the Original Transaction, was a wholly-owned subsidiary of Landore. \n \nThe purchase price for the transfer of the Lamaune Assets to Lamaune was CDN$6,200,000, which was satisfied by the issuance of a promissory note by Lamaune, as replaced effective as of August 29, 2012 and April 30, 2014 (the \"Promissory Note\"), and secured by a loan agreement, as amended effective as of August 29, 2012 (the \"Loan Agreement\"), and security agreement (the \"Security Agreement\") between Lamaune and Landore Canada (collectively, the \"Loan Documents\"). In connection with the Original Transaction, Landore also agreed to make a loan facility available to Lamaune for working capital requirements. \n \nPursuant to the amendments to the Loan Agreement referenced above, among other matters, the maturity date was extended to April 30, 2019, certain payments were made by Lamaune to Landore Canada in respect of the interest accrued and owing up to April 30, 2014 and the interest provisions were revised such that the p...