Loncor Gold Inc. (TSX:LN, OTCQX:LONCF), in a corporate update to its shareholders, has announced that discussions continue with potential strategic partners with respect to the development of Loncor's gold deposits in the Democratic Republic of the Congo (DRC).
The gold exploration company said it has concluded a leasing agreement with Ding Sheng Services SARL that permits Ding Sheng to mine the non-strategic alluvial potential to the south of Adumbi, with a focus on the gravels bordering the Imbo River.
Loncor noted that as consideration for the award of the lease, Ding Sheng paid the company a total of US$1.25 million, with Loncor receiving a further 25% of future revenue generated, after deducting US$1 million from Loncor's attributable revenues from production.
READ: Loncor Gold moves one step closer to earning a mining permit for Makapela gold project in the DRC
The company added that there are clear lessee taxes and environmental obligations outlined within the agreement, as required by the DRC Mining Code, and to facilitate the application of the said obligations, Loncor has produced detailed base line studies on the area to be mined and has appointed a number of representatives to monitor both production and environmental impact.
As well, Loncor stated that it continues to monitor good progress of the application previously filed to obtain a Mining Permit (Permis d'Exploitation) at its 100% owned Makapela gold project, awaiting for final signature.
Makapela has an Indicated mineral resource of 614,200 ounces of gold, at 8.66 grams per tonne (g/t), along with an Inferred resource of 549,600 ounces, at 5.3 g/t gold, using a 2.75 g/t cut-off grade, according to the company.
Loncor is a Canadian gold exploration company focused on the Ngayu greenstone gold belt in the northeast of the DRC.
Contact Sean at sean@proactiveinvestors.com