- Sale of Makapela, a non-core asset, provides
significant non-dilutive capital for Loncor to move forward its
flagship Adumbi gold deposit
TORONTO, Dec. 13,
2023 /CNW/ - Loncor Gold Inc. ("Loncor" or the
"Company") (TSX: LN) (OTCQX: LONCF) (FSE: LO51) is
pleased to announce that it has entered into an agreement for the
sale of Loncor's Makapela property for Cdn$13,500,000 cash. The agreement calls
for the sale price to be paid in a series of progress payments
beginning with a deposit of Cdn$2,000,000. The balance of the progress
payments, totalling Cdn$11,500,000,
will be paid upon completion of the transfer of title to Makapela,
which is expected to occur before the end of February 2024.
Loncor's Chief Executive Officer, John
Barker, commented: "Loncor has conducted a number
of discussions with potential strategic partners over the last 18
months, many of which involved proposals that would have resulted
in significant equity dilution. We believe the sale of the
non-core Makapela property provides Loncor with an opportunistic
route to raise significant non-dilutive financing, and represents a
major step towards further development of our world class Adumbi
gold deposit and the numerous other targets along structure from
Adumbi."
Loncor's flagship Adumbi deposit holds an indicated mineral
resource of 1.88 million ounces of gold (28.185 million tonnes
grading 2.08 g/t gold), 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. A Mining Permit
has already been granted for the development of Adumbi and the DRC
government holds a direct 10% free carry holding in the
project.
About Loncor Gold Inc.
Loncor is a Canadian gold exploration company focussed on the Ngayu
Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (the
"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 g/t gold), 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 by the
Company 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).
Additional information with respect to Loncor and its projects
can be found on Loncor's website at www.loncor.com.
Qualified Person
Peter N. Cowley, who is President of
Loncor and a "qualified person" as such term is defined in National
Instrument 43-101, has reviewed and approved the technical
information in this press release.
Technical Reports
Additional information with respect to the Company's Adumbi deposit
(and other properties of the Company within its Imbo Project) is
contained in the technical report of New SENET (Pty) Ltd and
Minecon Resources and Services Limited dated December 15, 2021 and entitled "NI 43-101
Preliminary Economic Assessment of the Adumbi Deposit in the
Democratic Republic of the
Congo". A copy of the said report can be obtained from
SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Additional information with respect to the Company's Makapela
Project, and certain other properties of the Company in the Ngayu
gold belt, is contained in the technical report of Venmyn Rand
(Pty) Ltd dated May 29, 2012 and
entitled "Updated National Instrument 43-101 Independent Technical
Report on the Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo". A
copy of the said report can be obtained from SEDAR at
www.sedar.com and EDGAR at www.sec.gov.
Cautionary Note Concerning Forward-Looking
Information
This press release contains
forward-looking information. All statements, other than
statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future (including, without limitation,
statements regarding the sale price for Makapela being paid in
progress payments, timing for completion of the transfer of title
to Makapela, further development of the Company's Adumbi deposit,
mineral resource estimates, potential mineral resource increases,
potential mineralization, future exploration and development) are
forward-looking information. This forward-looking information
reflects the current expectations or beliefs of the Company based
on information currently available to the Company.
Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things,
risks associated with completing transfer from Loncor
to the buyer of title to Makapela, the possibility that
future exploration (including drilling) or development results will
not be consistent with the Company's expectations, risks related to
the exploration stage of the Company's properties, uncertainties
relating to the availability and costs of financing needed in the
future, failure to establish estimated mineral resources (the
Company's mineral resource figures are estimates and no assurances
can be given that the indicated levels of gold will be produced),
changes in world gold markets or equity markets, political
developments in the DRC, gold recoveries being less than those
indicated by the metallurgical testwork carried out to date (there
can be no assurance that gold recoveries in small scale laboratory
tests will be duplicated in large tests under on-site conditions or
during production), fluctuations in currency exchange rates,
inflation, changes to regulations affecting the Company's
activities, delays in obtaining or failure to obtain required
project approvals, the uncertainties involved in interpreting
drilling results and other geological data and the other risks
disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual information form dated March 31, 2023 filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov. Forward-looking information speaks
only as of the date on which it is provided and, except as may be
required by applicable securities laws, the Company disclaims any
intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions
inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on
such information due to the inherent uncertainty therein.
SOURCE Loncor Gold Inc.