Loncor Gold Inc said it has closed a non-brokered private placement of 5,650,000 units at a price of C$0.55 each for gross proceeds of C$3,107,500, an upsize from the original C$2,750,000 financing amount.
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 in the placement consists 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 announces non-brokered private placement for gross proceeds of up to C$2.75M
The company said 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 pursuant to an exemption from such registration requirements.
Loncor is a Canadian gold exploration company focused on the Ngayu Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (DRC). The Loncor team has over two decades of experience of operating in the DRC and the company'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 - 28.185 million tonnes grading 2.08 grams per ton gold (g/t Au) - and the Adumbi deposit and two neighbouring deposits hold an inferred mineral resource of 2.090 million ounces of gold (22.508 million 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 (which 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