Loncor Resources Inc. ("
Loncor" or the
"
Company") (TSX: "LN"; OTCQB: "LONCF") announces
that it has acquired an additional 5.04% interest in its subsidiary
Adumbi Mining SARL (“
Adumbi Holdco”) pursuant to a
private transaction with one of the former minority shareholders of
Adumbi Holdco. This acquisition increases Loncor’s interest
in Adumbi Holdco from 71.25% to 76.29%. “Loncor continues to
consolidate its dominant position in the Ngayu Goldbelt. Over
the next twelve months we intend to drill the Adumbi gold deposit
and several other highly prospective areas of the Imbo license,”
said Founder and CEO, Arnold Kondrat.
Adumbi Holdco, which recently changed its name
from KGL Somituri SARL, holds six exploitation licences in the
Ngayu Greenstone Belt including the Imbo exploitation licence,
where an Inferred Mineral Resource of 1.675 million ounces of gold
(20.78 million tonnes grading 2.5 g/t Au,) was outlined in January
2014 by independent consultants Roscoe Postle Associates Inc on
three separate deposits, Adumbi, Kitenge and Manzako. 76.29%
of this gold resource is now attributable to Loncor.
About Loncor Resources
Inc.Loncor is a Canadian gold exploration company focussed
on the Ngayu Greenstone Belt in the Democratic Republic of the
Congo (the “DRC”). The Loncor team has over
two decades of experience of operating in the DRC. Ngayu has
numerous positive indicators based on the geology, artisanal
activity, encouraging drill results and an existing gold resource
base. The area is 200 kilometres southwest of the Kibali gold
mine, which is operated by Barrick Gold (Congo) SARL
(“Barrick”). In 2019, Kibali produced record
gold production of 814,000 ounces at “all-in sustaining costs” of
US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt
as an area of particular exploration interest and is moving towards
earning 65% of any discovery in 1,894 km2 of Loncor ground that
they are exploring. As per the joint venture agreement signed
in January 2016, Barrick manages and funds exploration on the said
ground at the Ngayu project until the completion of a
pre-feasibility study on any gold discovery meeting the investment
criteria of Barrick. In a recent announcement Barrick
highlighted six prospective drill targets and are moving towards
confirmation drilling in 2020. Subject to the DRC’s free
carried interest requirements, Barrick would earn 65% of any
discovery with Loncor holding the balance of 35%. Loncor will
be required, from that point forward, to fund its pro-rata share in
respect of the discovery in order to maintain its 35% interest or
be diluted.
In addition to the Barrick JV, certain parcels
of land within the Ngayu project surrounding and including the
Makapela and Adumbi deposits have been retained by Loncor and do
not form part of the joint venture with Barrick. Barrick has
certain pre-emptive rights over the Makapela deposit.
Loncor’s Makapela deposit (which is 100%-owned by Loncor) has
an Indicated Mineral Resource of 614,200 ounces of gold (2.20
million tonnes grading 8.66 g/t Au) and an Inferred Mineral
Resource of 549,600 ounces of gold (3.22 million tonnes grading
5.30 g/t Au). Adumbi and two neighbouring deposits hold an
Inferred Mineral Resource of 1.675 million ounces of gold (20.78
million tonnes grading 2.5 g/t Au), with 76.29% of this resource
being attributable to Loncor via its 76.29% interest.
Resolute Mining Limited (ASX/LSE: "RSG") owns
25% of the outstanding shares of Loncor and holds a pre-emptive
right to maintain its pro rata equity ownership interest in Loncor
following the completion by Loncor of any proposed equity
offering.
Additional information with respect to Loncor
and its projects can be found on Loncor's website at
www.loncor.com.
Qualified PersonPeter N. Cowley, who is
President of Loncor and a "qualified person" as such term is
defined in National Instrument 43-101, has reviewed and approved
the technical information in this press release.
Technical ReportsCertain additional information
with respect to the Company’s Ngayu project is contained in the
technical report of Venmyn Rand (Pty) Ltd dated May 29, 2012 and
entitled "Updated National Instrument 43-101 Independent Technical
Report on the Ngayu Gold Project, Orientale Province, Democratic
Republic of the Congo". A copy of the said report can be
obtained from SEDAR at www.sedar.com and EDGAR at
www.sec.gov.
Certain additional information with respect to
the Company’s recently acquired Imbo licence properties is
contained in the technical report of Roscoe Postle Associates Inc.
dated February 28, 2014 and entitled "Technical Report on the
Somituri Project Imbo Licence, Democratic Republic of the
Congo". A copy of the said report, which was prepared for,
and filed on SEDAR by, Kilo Goldmines Ltd., can be obtained from
SEDAR at www.sedar.com. To the best of the Company’s
knowledge, information and belief, there is no new material
scientific or technical information that would make the disclosure
of the Imbo licence mineral resource set out in this press release
inaccurate or misleading.
Cautionary Note to U.S.
InvestorsThe United States Securities and Exchange
Commission (the "SEC") permits U.S. mining
companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally
extract or produce. Certain terms are used by the Company,
such as "Indicated" and "Inferred" "Resources", that the SEC
guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosure in the Company's Form 20-F
annual report, File No. 001- 35124, which may be secured from the
Company, or from the SEC's website at
http://www.sec.gov/edgar.shtml.
Cautionary Note Concerning
Forward-Looking InformationThis press release contains
forward-looking information. All statements, other than
statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future (including, without limitation,
statements regarding drill targets, exploration results, mineral
resource estimates, future exploration (including drilling) and
development plans and potential gold discoveries) are
forward-looking information. This forward-looking information
reflects the current expectations or beliefs of the Company based
on information currently available to the Company.
Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things,
the possibility that the planned drilling program by Barrick will
be delayed, uncertainties relating to the availability and costs of
financing needed in the future, risks related to the exploration
stage of the Company's properties, the possibility that future
exploration (including drilling by both Barrick and the Company) or
development results will not be consistent with the Company's
expectations, failure to establish estimated mineral resources (the
Company’s mineral resource figures are estimates and no assurances
can be given that the indicated levels of gold will be produced),
changes in world gold markets or equity markets, political
developments in the DRC, gold recoveries being less than those
indicated by the metallurgical testwork carried out to date (there
can be no assurance that gold recoveries in small scale laboratory
tests will be duplicated in large tests under on-site conditions or
during production), fluctuations in currency exchange rates,
inflation, changes to regulations affecting the Company's
activities, delays in obtaining or failure to obtain required
project approvals, the uncertainties involved in interpreting
drilling results and other geological data and the other risks
disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual report on Form 20-F dated April 1, 2019 filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Forward-looking information speaks only as of the date on which it
is provided and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new
information, future events or results or otherwise. Although
the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
For further information, please visit our
website at www.loncor.com, or contact: Arnold Kondrat, CEO,
Toronto, Ontario, Tel: + 1 (416) 366 7300.
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