Chengtun Mining Acquires Loncor Gold for C$261M, Secures Strategic Adumbi Gold Deposit in DRC
Chengtun Mining Expands into Gold with Acquisition of Loncor Gold and Adumbi Deposit
Chengtun Mining, a Chinese mining group, has agreed to acquire Canadian gold exploration company Loncor Gold in an all-cash deal valued at C$261 million (approximately $186 million), gaining control of the Adumbi gold deposit in the Democratic Republic of Congo (DRC).
The definitive arrangement agreement, announced on October 14, 2025, sets the purchase price at C$1.38 per Loncor share, representing a 33% premium over Loncor’s 30-day volume-weighted average price and a 16% premium to its TSX closing price on October 10, 2025.
Loncor holds an 84.68% stake in the Adumbi deposit, located in the Ngayu greenstone belt in northeastern DRC, while the Congolese state mining company Sokimo retains 10%. A 2021 preliminary economic assessment estimated Adumbi’s resources at 3.66 million ounces of gold.
Deal Structure and Approvals
The transaction includes standard protective clauses, such as a non-solicitation agreement and a fiduciary out, allowing Loncor to accept a superior offer while giving Chengtun the right to match it. Both parties agreed to reciprocal termination fees of C$10 million under specified conditions.
All outstanding Loncor stock options and warrants will be cashed out at the difference between the transaction price and the exercise price. Chengtun will also provide $3 million in repayable advances within 60 days for Adumbi exploration and corporate needs.
The acquisition will proceed under the Ontario Business Corporations Act, requiring two-thirds shareholder approval, TSX acceptance, and regulatory clearances. Closing is expected in Q1 2026, after which Loncor shares will be delisted from the TSX.
Major Loncor shareholders, including Resolute Mining (18%) and Arnold Kondrat (17%), along with the full board of directors, have signed support agreements covering about 38% of shares.
A special committee of independent directors deemed the offer fair and in shareholders’ best interest, with Stifel Canada providing a fairness opinion.
Chengtun’s Strategic Entry into Gold
The acquisition marks Chengtun’s first move into the gold sector, adding Adumbi and potentially other projects in the Ngayu belt, such as the Imbo project, to its portfolio.
Chengtun is already active in the DRC’s base metals sector through Congo Chengtun Mining, focusing on copper, cobalt, and nickel at its Kalongwe project in Kolwezi (Lualaba).
The project is expected to produce approximately 22,600 tons of copper and 3,700 tons of cobalt annually, with plans for a hydrometallurgical plant to process local ore.
This acquisition strengthens Chengtun’s presence in the DRC, expanding its portfolio across both gold and base metals, while positioning the company to benefit from the DRC’s rich mineral resources and strategic mining opportunities.
SOURCE:bankable.africa
