News Summary
The most recent news, dated 2025-12-15, reports further multiple, high-grade gold intersections from Loncor Gold’s deep drilling program at its Adumbi deposit in the Democratic Republic of the Congo. Key highlights from borehole LADD033 include:
– 26.36 metres grading 4.19 g/t gold from 469 metres.
– 15.49 metres grading 6.92 g/t gold from 533.28 metres.
– A very high-grade intersection of 1.36 metres grading 298 g/t gold from 603.94 metres.
President Peter Cowley stated that these results continue to show multiple mineralized zones at depth, with excellent grades and thicknesses suitable for underground mining below the existing 3.66 million ounces within the open pit shell. He also noted that LADD032 intersected Banded Iron Formation (BIF) mineralization over 900 meters below Adumbi Hill’s summit, marking the deepest drill intersection to date, suggesting significant depth extensions, consistent with other major Archean-aged BIF-hosted gold deposits.
This news follows closely on the heels of a significant corporate development: Loncor Gold’s shareholders overwhelmingly approved the acquisition of the company by Chengtun Mining Group Co., Ltd. for C$1.38 per share in an all-cash transaction, as announced on 2025-12-11. This transaction was initially announced on 2025-10-14 and is pending final court approval and other closing conditions, with an expected closing no later than Q1 2026.
Material Impact
The drilling results, while individually positive for the Adumbi asset, have a neutral material impact on Loncor Gold’s stock price from an investment perspective for public shareholders. This is because the company is currently under a binding agreement to be acquired by Chengtun Mining for a fixed price of C$1.38 per share. The stock price has already adjusted to this acquisition price, trading at C$1.35 as of December 12, 2025.
The positive drill results may enhance the long-term value of the Adumbi project for the acquirer, Chengtun Mining, but they do not alter the agreed-upon cash consideration for Loncor Gold shareholders. Unless a superior offer (which is highly improbable at this late stage after shareholder approval) were to emerge, the current share price will likely continue to trade in a narrow range around the C$1.38 offer price, reflecting the small remaining arbitrage opportunity and the risk of the deal not closing. The news does not introduce new information that would prompt a re-evaluation of the acquisition terms for current shareholders.
Catalysts
The primary focus for Loncor Gold will be the completion of the acquisition by Chengtun Mining. Key upcoming events include:
– Receipt of final order from the Ontario Superior Court of Justice: This is the next critical step following shareholder approval.
– Satisfaction or waiver of other closing conditions: All remaining conditions specified in the arrangement agreement must be met.
– Official closing of the transaction: Expected not later than Q1 2026.
– Delisting of Loncor shares from the TSX: Upon closing, the company’s shares will cease trading publicly.
– Cessation of reporting issuer status: Loncor will apply to cease being a reporting issuer in Canada and a registrant with the U.S. SEC.
While the drilling program continues, further exploration results (such as those for LADD032 and LADD034 mentioned in the recent news) will primarily be of interest to Chengtun Mining post-acquisition, rather than driving Loncor’s public share price.
Materiality Conclusion
The drilling results, despite reporting multiple high-grade gold intersections, are Routine – Neutral for Loncor Gold’s stock price. The material event for Loncor Gold was the announcement of the acquisition by Chengtun Mining and its subsequent shareholder approval. With a fixed acquisition price of C$1.38 per share, the stock’s value for current shareholders is largely capped at this level, barring the remote possibility of a superior offer or the unlikely failure of the transaction. The drill results, while adding to the underlying value of the asset, do not change the immediate investment thesis for Loncor’s shares.
