Partnered with Barrick and Resolute Mining for Discovery in the Congo
Controls over 2,400,000 High Grade Ounces Outside of Barrick JV
Message: Loncor Announces Encouraging Exploration Results Received by Randgold on Loncor’s Ngayu Project Joint Venture
Toronto, Canada -- April 3, 2018 -- Loncor Resources Inc. ("Loncor" or the "Company") (TSX: "LN") is pleased to announce that it has entered into a binding term sheet with Resolute Mining Limited ("Resolute") (ASX:RSG) whereby Resolute will acquire a total of 51,000,000 common shares of Loncor.
As part of the series of transactions contemplated by the term sheet (the "Transactions"), (a) the Company will issue 26,000,000 common shares to Resolute at a price of Cdn$0.10 per share for gross proceeds of Cdn$2,600,000, (b) Resolute will purchase 25,000,000 common shares of Loncor held by Mr. Arnold Kondrat ("Kondrat") in exchange for consideration of Cdn $2,500,000, to be paid by the issuance to Kondrat of ordinary shares of Resolute, and (c) Loncor will acquire a 100% interest in two DRC companies holding exploration permits in the Ngayu goldbelt increasing Loncor's holdings from 960 square kilometres to 1,696 square kilometres. The Company also intends to complete a further non-brokered private placement of 1,700,000 common shares of the Company at a price of Cdn$0.10 per share for gross proceeds of Cdn$170,000. Kondrat will purchase 700,000 shares of this placement.
The term sheet also contemplates the entering into by Resolute and Kondrat of a shareholders' agreement to pool their respective common share positions in Loncor, with a combined holding of approximately 54% of the outstanding common shares of the Company upon completion of the Transactions.
Upon closing, an advisory fee of Cdn $138,500 will be paid to Arlington Group Asset Management Limited of London,UK.
All Transactions are subject to completion of satisfactory due diligence, fulfilment of agreed conditions precedent, TSX and shareholder approvals and execution of the definitive agreements.
Loncor has called a special shareholders' meeting for May 9, 2018 to seek the requisite shareholder approval for the Transactions.
Loncor has been working with one of Africa's most successful gold mining companies, Randgold Resources (Nasdaq:GOLD), in its Ngayu Joint Venture whereby Randgold earns 65% to manage and sole fund an exploration program including delivery of a pre-feasibility study on any gold discovery that would meet Randgold's investment criteria (reference is made to Loncor's May 18, 2017 press release).
About Loncor Resources Inc.
The Company is a Canadian goldexploration company focused on two projects in the Democratic Republic of the Congo (the "DRC") -- the Ngayu and North Kivu projects. TheCompany holds exploration permits covering 960 km2 of the Ngayu Archaean greenstone belt in Tshopo province in the northeast DRC and is its main focus. Loncor's 100%-owned Makapela prospect at the Ngayu project 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 5.30g/t Au). The Company also controls exploration permits covering an area of approximately 13,000 km2 inNorth Kivu province. Both projects havehistoric gold production. Additional information with respect to the Company's projects can be found on the Company's website at www.loncor.com.
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