Resolute invests in explorer with DRC gold rights
PERTH (miningweekly.com) – Australian gold producer Resolute Mining has taken a 27% interest in Canadian explorer Loncor Resources through a C$2.6-million subscription placement and a C$2.5-million share swap.
The agreement will see Loncor acquire full ownership of two companies in the Democratic Republic of Congo (DRC) holding exploration permits in the Ngayu gold belt, increasing the Canadian firm’s holdings from 1 130 'carres' to 1 997 'carres'.
Loncor will then issue Resolute 26-million common shares, priced at C$0.10 each, with Resolute also purchasing a further 25-million Loncor shares held by Loncor founder and CEO Arnold Kondrat in exchange for C$2.5-million, which will be paid through the issue of Resolute shares.
The actual number of Resolute shares to be issued to Kondrat will be calculated based on the five-day volume-weighted average price of Resolute shares immediately prior to the date of completion.
On completion of the transaction, Resolute will have the right to appoint one director to the Loncor board.
The agreement has also committed both companies to collaborate on the identification and development of orebodies in the DRC in order to maximise shareholder value.
Resolute MD and CEO Jon Welborn said on Wednesday that the investment in Loncor was opportunistic and part of Resolute’s broader strategy in the region.
“We are convinced these Archean greenstone belts will host future gold mines. Resolute is establishing a strategic position by acquiring interests in successful explorers with large holdings. The investment in Loncor complements our existing interest in Kilo, which has already delineated a 1.7-million-ounce orebody in the region.”
Welborn added that, ultimately, the company’s ambition was to participate in the development of a major new gold mining district, consistent with Resolute’s Golden Pride legacy as a successful pioneer of the gold mining industry in East Africa.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation