Loncor Resources Inc (TSE:LN) said it has closed the balance of its $5.75 million non-brokered private placement financing, in which the company issued 3.5 million of its units at a price of C$0.50 per unit for gross proceeds of C$1.75 million.
Loncor 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.
The company said 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.
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Loncor noted that Inferred mineral resources at the Imbo Project have already been delineated for the Adumbi deposit (2.19 million ounces of gold at 2.35 grams per tonne), the Kitenge deposit (0.19 million gold ounces at 6.6 grams per tonne), and the Manzako deposit (0.12 million ounces of gold at 5 grams per tonne).
The company said its current drill program at Adumbi is at depth where grades are increasing and where the potential exists to significantly increase the current 2.19 million ounce Inferred resource
At the satellite Kitenge and Manzako deposits, meanwhile, Loncor said mineralisation remains open at depth and along strike and further drilling will be undertaken at these two deposits, potentially increasing the current mineral resources.
The group also noted that the Imbo Project PEA will be undertaken to ascertain early-stage economics of Adumbi and other deposits that could include the Makapela deposit, which has an estimated Inferred resource of 614,200 ounces of gold grading 8.66 grams per tonne along with an Inferred 549,600 gold ounce resource grading 5.30 grams per tonne that remains open at depth.
Loncor Resources is a Canadian gold exploration company focused on the Ngayu Greenstone Belt in the northeast of the Democratic Republic of the Congo.
Contact Sean at sean@proactiveinvestors.com