DR Congo explorer Loncor Resources (ln-v) is $6.8 million richer after Newmont Mining (nmc-t, nem-n) exercised some 2 million in-the-money warrants worth $2.9 million and took down a non-brokered $3.9 million private placement.
Newmont Mining boosted its stake in Loncor to 16.9% as a result of the two transactions. The private placement financing in Loncor consists of 2 million units priced at $1.95 apiece. Each unit is comprised of one share and a half-share purchase warrant, exercisable at a price of $2.30 for a period of two years.
In addition, Newmont exercised 2 million warrants of Loncor that it had acquired earlier this year. The share purchase warrants had an exercise price of $1.45 per share.
Loncor is a gold exploration company focused in the Democratic Republic of the Congo. The Company has exclusive gold rights to an area covering 4,550 square kilometres along the Ngayu Archaean greenstone belt in Orientale province.
Loncor also owns or controls 55 exploration permits in North Kivu province, covering 17,760 square kilometres west of the city of Butembo. Both areas have historical gold production. Loncor began drilling on the Yindi prospect at its Ngayu project in September.
The first three holes into the Yindi soil anomaly intersected multiple intervals of significant gold mineralization in each hole, highlighted by: 4.9 metres of 1.2 grams gold per tonne and 8.1 metres of 2.53 grams gold in hole 1; 4.9 metres of 1.51 grams gold and 5.8 metres of 1.12 grams gold in hole 2; and 24 metres averaging 1.48 grams gold in hole 3.
Seven holes are completed to date at Yindi, with assays pending for the remainder. Loncor has also drilled the Makapela prospect, 50 km northwest of Yindi, with at least three holes. Assay results are awaited.
Taking into account the placement and warrant exercise, Loncor now sits with 47.4 million shares outstanding, or 56 million on a fully diluted basis. It’s trading near a 52-week high of $2.18.
Be the first to comment on "Newmont ups stake in Loncor Resources"