Canadian gold exploration company Loncor Gold has entered into an agreement for the sale of its Makapela property in the Democratic Republic of Congo (DRC) for C$13.5-million cash.
The agreement calls for the sales price to be paid in a series of progress payments beginning with a deposit of C$2-million.
The balance of the progress payments, totalling C$11.5-million, will be paid upon completion of the transfer of title to Makapela, which is expected to occur before the end of February.
“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.
“We believe the sale of the noncore 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,” Loncor CEO John Barker said on December 14.
Loncor’s flagship Adumbi deposit holds an indicated mineral resource of 1.88-million ounces of gold, with 28.19-million tonnes grading at 2.08 g/t gold. The Adumbi deposit and two neighbouring deposits hold an inferred mineral resource of just more than two-million ounces of gold, with 22.51-million tonnes grading 2.89 g/t gold. Just under 85% of these resources are attributable to Loncor.
A mining permit has already been granted for the development of Adumbi and the DRC government holds a direct 10% free carry holding in the project.