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Resolute Mining acquires 27% stake in gold explorer focused on DRC

Published: 03:05 27 Jun 2018 EDT

Acquisition sign
The acquisition adds to Resolute’s extensive interests in Africa.

Resolute Mining Limited (ASX:RSG) has completed the acquisition of a 27% interest in Loncor Resources Inc (TSX:LN) which holds gold prospects and resources in the Democratic Republic of Congo (DRC).

Finalising the acquisition follows Resolute completing due diligence and it now owns 51 million shares in Loncor.

These were acquired via a CAD$2.6 million subscription for 26 million shares in a placement and a share swap of CAD$2.5 million of Resolute shares for 25 million existing Loncor shares.

READ: Resolute Mining has global investment manager increase stake

Loncor’s DRC properties include exclusive gold rights to an area covering 1,696 square kilometres along the Ngayu Archaean greenstone belt in the country’s northeast.

This belt is the north-western extension of the Lake Victoria greenstone belt terrain which hosts a number of world-class gold deposits, including Geita, North Mara and Bulyanhulu.

It also contains the Golden Pride mine which was developed, owned and operated by Resolute and produced more than 2 million ounces of gold between 1998 and 2014.

Makapela and Yindi are key interests

Loncor’s key interests include the 100%-owned Makapela and Yindi prospects.

Makapela hosts an NI 43-101-compliant indicated resource of 2.2 million tonnes at 8.7 g/t for 614,200 ounces and an inferred resource of 3.2 million tonnes at 5.3 g/t for 549,600 ounces.

Loncor also has a joint venture with Randgold Resources (DRC) Limited covering all exploration permit areas comprising Loncor’s Ngayu project, other than certain parcels of land surrounding and including Makapela and Yindi.

Randgold manages and funds all exploration of the permit areas and has the right to earn up to 65% of the joint venture vehicle.

Two gold operations

Resolute operates two mines, the Syama Gold Mine in Mali and the Ravenswood Gold Mine in Queensland, Australia.

In Ghana, the company has completed a feasibility study on the Bibiani Gold Mine focused on the development of an underground operation requiring modest capital and using existing plant infrastructure.

Resolute is also exploring more than 6,600 square kilometres of potential world-class tenure in West Africa and Australia with active drilling programs in Mali, Ghana, Cote d’Ivoire and Queensland.

It is one of the largest ASX-listed gold producers with FY18 guidance of 280,000 ounces of gold production at an All-In Sustaining Cost of A$1,360/ounce.

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