Loncor Gold Inc said it has completed its previously-announced, non-brokered private placement financing consisting of 7,850,000 company units, at a price of C$0.70 per unit, for gross proceeds of about C$5.5 million.
The offering was upsized from the original amount of C$4.9 million.
Loncor noted it intends to use the proceeds from the financing for continued exploration and development of the company’s Imbo project in the Democratic Republic of the Congo (DRC), including additional drilling and funding of a Preliminary Economic Assessment (PEA) and for general corporate purposes.
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Each unit of the private placement consists 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 of the company at an exercise price of C$0.95 for a period of 12 months following the closing date of the issuance of the units.
Loncor said its focus continues to be on the company’s 3.15 million ounces Adumbi deposit within the Imbo project, where drilling is continuing to intersect the mineralized zone below the US$1,500 per ounce pit shell.
It added that further drilling is also being undertaken within the Adumbi open pit shell to upgrade Inferred resources into the Indicated category.
Loncor Gold is focused on projects in the prolific Ngayu Greenstone Gold Belt in northeast DRC.
Contact Sean at sean@proactiveinvestors.com