Loncor Gold Inc has announced a non-brokered private placement of up to 5,000,000 units of the company at a price of C$0.55 per unit for gross proceeds of up to C$2.75 million.
The company said it intends to use the proceeds from the financing for continued development of its Adumbi and Makapela gold deposits and for general corporate purposes.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the company at an exercise price of C$0.75 for a period of 24 months following the closing date of the financing.
READ: Loncor Gold files Adumbi deposit PEA; says it's in 'preliminary discussions' with potential strategic partners
Closing of the financing is subject to receipt of all necessary approvals, including board and Toronto Stock Exchange approvals.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States and may not be offered or sold within the United States unless registered under the US Securities Act and applicable state securities laws or under an exemption from such registration requirements.
Loncor is a Canadian gold exploration company focused on the Ngayu greenstone gold belt in the northeast of Democratic Republic of the Congo (DRC). The Loncor team has over two decades of experience of operating in the DRC.
Loncor's growing resource base in the Ngayu belt currently comprises the Imbo and Makapela projects.
At the Imbo project, the Adumbi deposit holds an indicated mineral resource of 1.88 million ounces of gold, or 28,185,000 tonnes grading 2.08 grams per tonne gold (g/t Au)), and the Adumbi deposit and two neighbouring deposits holding an inferred mineral resource of 2.09 million ounces of gold, or (22,508,000 tonnes grading 2.89 g/t Au), with 84.68% of these resources being attributable to Loncor.
The company has been carrying out a drilling program at the Adumbi deposit with the objective of outlining additional mineral resources.
The Makapela project, is 100% owned by Loncor and is located approximately 50 kilometres from the Imbo project, has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).
Contact the author at jon.hopkins@proactiveinvestors.com