Loncor Resources Inc. (TSX:LN) has announced a non-brokered private placement of up to 10,000,000 units of the company at a price of C$0.50 per unit for gross proceeds of up to C$5 million.
The company said it intends to use the proceeds from the financing for continued exploration and development of its Imbo Project, including additional drilling on the Adumbi gold deposit, and for general corporate purposes. Certain insiders of the company have agreed to purchase a total of up to 20% of the units.
READ: Loncor Resources says third core hole at Adumbi deposit in the DRC indicates significant gold intersection
Each unit in the placement will consist of one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one common share at an exercise price of C$0.75 for a period of 12 months following the closing date of the financing.
Closing of the financing is subject to receipt of all necessary approvals, including board and Toronto Stock Exchange approvals.
Loncor Resources is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the northeast of the Democratic Republic of the Congo. The Loncor team has over two decades of experience of operating in the country.
Resolute Mining Limited (ASX:RSG) (LON:RSG) owns 26% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro-rata equity ownership interest in Loncor following the completion of any proposed equity offering.
Contact the author at jon.hopkins@proactiveinvestors.com