Chengtun Mining Acquisition of Loncor Gold Marks Major DRC Investment

Chengtun Mining Acquisition of Loncor Gold Advances DRC Gold Exploration

Chengtun Mining Group has agreed to acquire all outstanding shares of Loncor Gold for C$1.38 per share. This deal values Loncor at roughly C$261 million on a fully diluted basis. The acquisition highlights Chengtun’s growing commitment to gold exploration in the Democratic Republic of Congo (DRC). The offer represents a 33% premium over Loncor’s 30-day average trading price and a 16% premium over its recent TSX closing price.

The acquisition will conclude Loncor’s 15-year tenure as a Toronto-listed exploration company focused on the Ngayu greenstone belt in northeastern DRC. Loncor’s flagship Imbo project, which includes the Adumbi deposit, holds indicated and inferred gold resources totaling nearly 4 million ounces.

Shareholder Support and Regulatory Approval Process for Chengtun Mining Acquisition

Loncor’s board and independent directors unanimously approved the acquisition agreement, citing it as fair and beneficial for shareholders. Major shareholders controlling around 38% of shares, including Resolute Mining and executive chairman Arnold Kondrat, support the deal. The transaction awaits customary shareholder, court, and regulatory approvals, with a special meeting scheduled for voting. Approval requires two-thirds of votes cast and majority minority support under Canadian securities laws.

If approved, the acquisition is expected to close by Q1 2026. Loncor will then delist from the Toronto Stock Exchange and cease reporting in Canada and the US. This deal marks a strategic expansion for Chengtun Mining’s footprint in the African gold market.

SuperMetalPrice Commentary:

Chengtun Mining’s acquisition of Loncor Gold signals increasing Chinese investment interest in African critical minerals. The deal underscores the importance of strategic assets like the Ngayu greenstone belt in the DRC. With gold demand stable and exploration risks high, consolidations such as this enhance operational scale and resource control. Meanwhile, regulatory approvals remain a critical step for transaction success. The acquisition will also shift Loncor’s market presence, aligning with Chengtun’s broader global resource strategy.