- Chengtun Mining Group, a precious and base metal miner listed on the Shanghai Stock Exchange, intends to acquire Loncor Gold (TSX:LN), an explorer active in the Democratic Republic of the Congo, for C$1.38 per share or approximately C$261 million
- Loncor’s flagship Imbo project hosts the Adumbi deposit, which contains an indicated resource of 1.88 million ounces of gold
- Loncor Gold stock last traded at C$1.19 and has added 183.33 per cent year-over-year
Chengtun Mining Group, a precious and base metal miner listed on the Shanghai Stock Exchange, intends to acquire Loncor Gold (TSX:LN), an explorer active in the Democratic Republic of the Congo, for C$1.38 per share or approximately C$261 million.
Chengtun is a miner and refiner focused on copper, cobalt and nickel, which recently expanded its focus into precious metals as part of a long-term diversification strategy. The company owns and operates mines in the Congo, including the Kalongwe mine, which have contributed to over ten consecutive years of positive operating income. Chengtun was recognized as one of China’s top 500 companies by Fortune China in 2023.
Loncor’s flagship preliminary economic assessment-stage Imbo project hosts the Adumbi deposit, which is estimated to host 1.88 million ounces of gold indicated. Adumbi and a pair of neighboring deposits also host an additional 2.090 million ounces inferred, with Loncor holding an 84.68 per cent stake in these resources.
Chengtun’s all-cash offer, representing a 16 per cent premium to Loncor’s closing share price on October 10, remains subject to shareholder, exchange and court approvals and may be superseded by a superior third-party proposal.
The acquisition is expected to close in Q1 2026.
Management commentary
“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,” Arnold Kondrat, Loncor Gold’s executive chairman, said in Tuesday’s news release. “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.”
About Loncor Gold
Loncor is a Canadian-based gold explorer active in the Congo’s Ngayu Greenstone gold belt. The company’s leadership team has over two decades of experience operating in the Central African country.
Loncor Gold stock (TSX:LN) last traded at C$1.19 and has added 183.33 per cent year-over-year. Shares are also listed on the OTCQX exchange in the United States.
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