Loncor Gold Inc. (TSX:LN, OTCQX:LONCF) revealed that it has closed a non-brokered private placement financing of 6.75 million units of the company at a price of C$0.50 each, raising gross proceeds of C$3.38 million.
The Toronto-based gold exploration company, which is focused on the Ngayu Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (DRC), said it plans to use the proceeds for the continued development of the company's Adumbi and Makapela gold deposits and for general corporate purposes.
READ: Loncor Gold upsizes non-brokered private placement financing for gross proceeds of up to C$3.375M from C$2.5M
Each unit 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 share at an exercise price of C$0.75 for a period of 24 months following the closing date of the financing.
The Loncor team has over two decades of experience in 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. According to the company, the Adumbi deposit and two neighbouring deposits hold an inferred mineral resource of 2.09 million ounces of gold.
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