Another Canadian explorer has been acquired by a Chinese entity. The latest target is Loncor Gold (TSX: LN), a gold explorer with assets focused on the Ngayu Greenstone belt of the Democratic Republic of the Congo.
The transaction announced this morning will see the gold miner acquired for $261 million in an all stock transaction by Chengtun Mining Group, a Shanghai-listed operator that is said to have extensive operations within the DRC. The figure translates to C$1.38 per share, which is a 33% premium to the stock’s thirty day volume weighted average trading price, and a 16% premium to Friday’s close.
Loncor’s principal asset is the Imbo Project, where the Adumbi deposit boasts 1.88 million ounces of indicated gold at 2.08 g/t gold, while the Adumbi, Kitenge, and Manzako deposits contained combined inferred resources of 2.09 million ounces of gold at 2.89 g/t gold.
“I am pleased to announce that we have entered into an agreement for the sale of the Company, marking a significant achievement for all stakeholders. This Transaction crystallizes the inherent value we have built over 15 years and eliminates future dilution while mitigating commodity, political, and execution risks. The sale delivers a strong outcome for shareholders,” commented Arnold Kondrat, Executive Chairman of Loncor.
A termination fee of $10 million is in place, while Chengtun in the interim is to provide a US$3.0 million refundable advance to Loncor for ongoing exploration initiatives.
The transaction remains subject the approval by shareholders, as well as customary regulatory and court approvals. Shareholders representing 38% of Loncor have entered into voting support agreements in connection with the arrangement.
The acquisition is currently expected to close in Q1 2026.
Loncor Gold last traded at $1.19 on the TSX.
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