Loncor Gold Sells Makapela Gold Project to Propel Adumbi Mine Development
Loncor Gold, owner of the Adumbi gold mine, has seized an opportunity to fuel its flagship project’s progression by selling its Makapela gold project.
The decision to divest the Makapela asset, announced on December 13, 2023, has enabled Loncor to secure 13.5 million Canadian USD (approximately 10 million USD).
CEO John Barker highlighted that this strategic move allowed Loncor to procure vital funds for the Adumbi mine’s development without resorting to substantial equity dilution.
The sale of Makapela, categorized as a “non-essential asset,” aligns with the company’s strategy to bolster its primary deposit, Adumbi, situated in the northeastern Democratic Republic of Congo (DRC).
The disparity in gold resources between the two sites is notable, with Adumbi boasting three times the gold resources of Makapela.
Adumbi stands as the cornerstone asset for Loncor, housing an impressive 3.66 million ounces of gold, while Makapela holds 1.164 million ounces and sits approximately 50 km away from Adumbi.
An earlier preliminary economic assessment unveiled the significant potential of the Adumbi mine, projecting an annual gold output of 303,000 ounces over 10.3 years.
The development plan entails an initial investment of USD 530 million. Importantly, Adumbi already possesses a mining permit issued by the Congolese government, which also holds a 10% stake in the future mining operations.
This strategic move by Loncor Gold signifies a pivotal step toward channeling resources and focus towards maximizing the immense potential of the Adumbi gold mine, positioning it as a key player in the region’s gold mining landscape.
