Loncor Gold Inc said it has increased the size of its previously announced non-brokered private placement financing to up to 6,750,000 units at a price of C$0.50 each for gross proceeds of up to C$3.375 million, which represents an upsize of up to C$875,000 from the original financing amount of C$2.5 million
Each unit in the financing 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.
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.
READ: Loncor Gold announces non-brokered private placement for gross proceeds of up to C$2.5M
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 pursuant to an exemption from such registration requirements.
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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.
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 - 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.
Following a drilling program carried out at the Adumbi deposit in 2020 and 2021, the company completed a Preliminary Economic Assessment (PEA) of the Adumbi deposit and announced the results of the PEA in December 2021.
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