Chengtun Mining Group to acquire Loncor Gold in $190m cash deal

Chengtun Mining Group, through its wholly-owned Canadian subsidiary Chengtun Gold Ontario Inc., proposes to acquire all issued and outstanding common and diluted shares of Loncor Gold Inc. for CAD 1.38 per share in cash. The total transaction value is approximately $190 million. This acquisition aims to boost Chengtun Mining Group's resource reserves and gold production.

Loncor Gold’s core asset is the Adumbi gold project in Ituri Province, Democratic Republic of Congo, boasting significant gold resources. According to Loncor's December 2021 preliminary economic assessment, controlled resources total 1.88 million ounces of gold, with inferred resources of 2.09 million ounces of gold. The project is situated in a region known for its rich gold deposits.

The acquisition remains subject to approval from Loncor’s special shareholders' meeting, regulatory bodies, and courts. Potential risks include fluctuations in gold prices and the political and economic stability of the Democratic Republic of Congo. The transaction is expected to conclude within six months of the agreement's signing.