Canadian gold explorer Loncor Gold has agreed to be acquired by China’s Chengtun Mining Group in an all-cash transaction valued at C$261-million.

The transaction is not only a significant milestone for Loncor’s shareholders, but marks a notable new investment by Chengtun in the Democratic Republic of Congo (DRC).

Through its wholly-owned subsidiary, Chengtun Gold Ontario, the Chinese group will acquire all outstanding shares of Loncor at C$1.38 each, representing a 33% premium to Loncor’s 30-day volume weighted average price and a 16% premium to its October 10 closing price on the TSX.

Loncor executive chairperson Arnold Kondrat said the sale was a significant achievement for the company and its investors. "This transaction crystallises 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.”

The acquisition also brings to an end Loncor’s 15-year journey as a Toronto-listed exploration company focused on the Ngayu greenstone belt in north-eastern DRC. The company’s flagship Imbo project, which includes the Adumbi deposit, has been the centerpiece of its exploration efforts, boasting an indicated resource of 1.88-million ounces of gold and an inferred resource of 2.09-million ounces, of which nearly 85% is attributable to Loncor.

Loncor’s board of directors and its special committee of independent directors unanimously determined that the deal is fair and in the best interests of shareholders. 

Loncor shareholders representing about 38% of the company’s issued and outstanding shares, including ASX- and LSE-listed Resolute Mining (18%) and Kondrat (17%), have entered into voting support agreements to back the deal.

“Resolute is pleased to support the Loncor transaction. The sale proceeds will further reinforce Resolute’s balance sheet and help advance the company’s strategic growth initiatives across our Africa-focused gold portfolio. Key priorities include the development of the Doropo project in Côte d’Ivoire and the extension of the Mako mine in Senegal," said Resolute CEO Chris Eger in a separate statement.

The transaction remains subject to customary conditions, including shareholder approval, court approval, and regulatory clearance. Loncor shareholders will vote on the deal at a special meeting, where approval will require support from two-thirds of votes cast and a majority of minority shareholders, in line with Canadian securities regulations.

If approved, the transaction is expected to close by the first quarter of 2026, after which Loncor will be de-listed from the TSX and will cease to be a reporting issuer in Canada and the US.