Loncor Gold Inc (TSE:LN) (OTCQX:LONCF) (FRA:LO51) said it has commenced a non-brokered private placement in an effort to raise C$4.9 million.
The placement will consist of up to 7 million units of the company priced at C$0.70 per unit. Loncor said certain company ‘insiders’ have agreed to purchase up to 15% of the units.
Proceeds from the fundraising will be used for the continued exploration and development of Loncor’s flagship Imbo project, in the Democratic Republic of Congo, including the funding of a preliminary economic assessment.
READ: Loncor Gold awards preliminary economic assessment contract for its Adumbi deposit to SENET and Minecon
According to Loncor, the Adumbi deposit located in the Imbo property hosts 3.15 million ounces of gold (41.32 million tons grading 2.37 g/t Au). Loncor also plans additional drilling within the Adumbi open pit shell in order to upgrade the inferred resources into the indicated category.
Each unit in the private placement will be comprised of one common share and one-half of one common share purchase warrant. Each warrant entitles its holder to acquire one common share of the company at an exercise price of C$0.95 for 12 months following the closing date of the financing, which is subject to all necessary approvals, including that of the Toronto Stock Exchange.
Earlier this month the gold explorer changed its name to Loncor Gold, to more accurately reflect its mining ambitions.
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