Loncor Gold Sells Makapela Property in the DRC
Loncor Gold, a Canadian gold exploration firm, has finalized a deal to sell its Makapela property in the Democratic Republic of Congo (DRC) for C$13.5 million in cash. The transaction structure involves a series of progressive payments, starting with an initial C$2 million deposit.
CEO John Barker highlighted that Loncor had explored various partnerships over the past 18 months, some of which could have led to considerable equity dilution.
However, the sale of the non-core Makapela property is viewed as an opportunistic means to secure significant non-dilutive financing.
Barker emphasized that this move represents a crucial step towards advancing the development of the Adumbi gold deposit and exploring other potential sites linked to Adumbi’s structure.
The Adumbi deposit, Loncor’s primary asset, boasts an indicated mineral resource of 1.88 million ounces of gold, grading at 2.08 g/t gold across 28.19 million tonnes.
Additionally, two adjacent deposits contribute to an inferred mineral resource of over two million ounces of gold, graded at 2.89 g/t gold across 22.51 million tonnes. Loncor retains nearly 85% ownership of these resources.
With a granted mining permit for Adumbi and a 10% free carry holding by the DRC government, Loncor is poised to drive the development of this significant gold deposit.
This strategic divestment enables a focused approach on maximizing the potential of their core assets for future growth and development.
