Loncor Gold has agreed to the sale of Loncor’s Makapela property in the Democratic Republic of Congo (DRC) for C$13,5 million ($10 million).
The agreement calls for the sale price to be paid in a series of progress payments beginning with a deposit of C$2 million ($1,5 million).
It said the balance of the progress payments will be paid upon completion of the transfer of title to Makapela, which is expected to occur before the end of February 2024.
“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,” said Loncor chief executive John Barker.
“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.”
A mining permit was granted for the development of Adumbi and the DRC government holds a direct 10% free carry holding in the project.
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).
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
