Loncor Resources Inc (TSE:LN) reported that it has closed the first tranche of its previously-announced, non-brokered equity private placement financing, consisting of eight million units of the company at a price of C$0.50 per unit for gross proceeds of C$4 million.
Loncor noted that 1.4 million units of the private placement were purchased by company insiders.
The company said it intends to use the private placement funds for continued exploration and development of its Imbo Project in the Democratic Republic of the Congo, which will include finalizing the current drill program at the Adumbi gold deposit and, following this program, undertaking a preliminary economic assessment (PEA) of Adumbi and its neighbouring deposits, as well as for general corporate purposes.
READ: Loncor Resources has the attention of major miners with its prospective gold projects in the DRC
Loncor added that it expects to close the balance of the financing for up to another C$1 million in gross proceeds next week.
Each unit of the total private placement consists of one company common share plus one-half of one common share purchase warrant, which entitles the holder to acquire one common share of the company at an exercise price of C$0.75 per share for a period of 12 months following the closing date of the financing.
Loncor Resources is a Canadian gold exploration company focused 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 Sean at sean@proactiveinvestors.com