The company, which changed name from Lithoquest Diamonds in November, had put its North Kimberley diamond project in Western Australia on care and maintenance in July due to challenging financing conditions and had started reviewing mineral projects.

Lithoquest said yesterday it had entered an option agreement with Landore Resources Canada to acquire 100% of its Miminiska and Keezhik gold projects in Ontario's northwest, for staged payments totalling about C$1.4 million in cash and a further $2.65 million in either cash or shares.

Landore would retain a 2% net smelter royalty on both projects. Lithoquest said it could buy back 1% for $1 million at any time.

The projects were about 20km apart and 115km east of the past-producing Pickle Crow mine and 150km southeast of Newmont's Musselwhite mine.

London-listed Landore said its accumulated expenditure on the projects was £1.68 million but they held a book value of nil in its financial statements at June 30, 2020.

Historical drilling results included 20.8m at 5.75g/t gold at Miminiska and 2m at 16.2g/t at Keezhik.

"Large land packages with extensive gold mineralisation, a significant historical database and excellent discovery potential are rarely available," Lithoquest president and CEO Bruce Counts said.

The company was planning field work ahead of a drill programme early next year.

Lithoquest said along with its recently staked Attwood project, it now had "a commanding land position" in the Fort Hope Greenstone Belt.

It had raised $238,400 for working capital in March at 8c per unit.

Its shares (TSXV: LDI) have ranged from 3-14c over the past year and shot up 50% to 12c yesterday, capitalising it at $7.7 million (US$6.4 million).

Landore (AIM: LND) closed down 0.7% to 34.75p, towards the upper end of its one-year range and valuing it at £36.8 million (US$52 million).