Update on shareholding in Loncor Gold Inc.
MWN-AI** Summary
On October 15, 2025, Resolute Mining (ASX/LSE: RSG) announced an update concerning its shareholding in Loncor Gold Inc. (TSX: LN). This comes in light of Loncor’s recent sale agreement with Chengtun Mining Group Co. (SSE: 600711) through its subsidiary, Chengtun Gold Ontario Inc. Under the agreement, Chengtun will acquire all outstanding common shares of Loncor for C$1.38 per share in a cash transaction, which is expected to close by the first quarter of 2026, pending regulatory approvals.
Resolute holds approximately 31,450,000 common shares in Loncor through its subsidiary, Resolute Canada 2 Pty Ltd, which amounts to about US$31 million (C$43.4 million) based on current rates. This stake represents about 17.8% of Loncor's issued shares. To facilitate the transaction, Resolute has signed a voting support agreement, committing to vote in favor of the deal at any necessary shareholder meetings.
Resolute's investment strategy includes potentially acquiring more Loncor securities or divesting depending on market conditions and other factors, especially if the transaction does not proceed. An early warning report regarding this shareholding and the support agreement will be filed with Canadian securities regulators and made available via SEDAR+.
CEO Chris Eger expressed optimism about the deal, noting that the proceeds will bolster Resolute's balance sheet and support strategic growth initiatives, particularly the development of the Doropo Project in Côte d’Ivoire and the expansion of the Mako Mine in Senegal. This transaction aligns with Resolute's focus on advancing its African gold portfolio.
MWN-AI** Analysis
The recent developments surrounding Resolute Mining's stake in Loncor Gold Inc. present discerning investors with noteworthy insights into the current market dynamics of the gold sector. As Resolute prepares for its divestiture of nearly 18% of Loncor via a C$1.38 cash transaction with Chengtun Mining Group, it underscores the strategic choices that companies are making in response to market conditions and growth mandates.
From an investment standpoint, the outlined sale represents a robust valuation for Loncor shares, demonstrating market confidence in the company's operational viability and future potential. The anticipated closing of this all-cash transaction by Q1 2026 signals a proactive shift, positioning Resolute to leverage the proceeds to bolster its balance sheet and finance key growth initiatives, notably expanding its operations in Cote d'Ivoire and Senegal.
Investors should note the market's reaction to Resolute's decision to support this transaction, as indicated by the voting support agreement. Such actions may bolster confidence among stakeholders regarding the strategic alignment of Resolute's asset management and growth plans. However, the potential volatility should not be overlooked; if regulatory approvals are not granted or the transaction falters, Resolute could reassess its stance on Loncor shares—potentially acquiring more or selling its holdings.
Moreover, market participants might consider monitoring Loncor’s trading activity leading up to the transaction's completion. Given the increased interest from Chengtun Mining, it is advisable for investors to evaluate their positions based on market sentiment and the broader economic context influencing gold prices. The overall outlook remains cautiously optimistic, but ongoing scrutiny of these developments will be essential for making informed investment decisions in the evolving landscape of gold mining.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PERTH, Australia, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Resolute Mining (“Resolute” or the “Company”) (ASX/LSE: RSG) is pleased to provide an update on its shareholding in Loncor Gold Inc (TSX: LN) (“Loncor”) following its sale agreement with Chengtun Mining Group Co. (SSE: 600711), through its wholly-owned subsidiary, Chengtun Gold Ontario Inc. ("Chengtun Mining”), as announced by Loncor on 14 October 2025.
Pursuant to the agreement Chengtun Mining will acquire all the outstanding common shares of Loncor, in exchange for C$1.38 per Loncor Share in an all-cash transaction (the “Transaction”). Subject to certain conditions, including the parties obtaining the requisite regulatory approvals, the Transaction is expected to close not later than Q1 2026.
Resolute holds, via its subsidiary, Resolute Canada 2 Pty Ltd (“Resolute Canada”), 31,450,000 common shares in Loncor valued at approximately US$31 million (C$43.4 million) at the current exchange rate and has entered into a voting support agreement pursuant to which it has agreed, among other things, to vote those shares in favour of the Transaction at any meeting of shareholders held for the purpose of approving the Transaction. Resolute Canada’s current shareholdings comprise approximately 17.8% of Loncor’s issued and outstanding common shares.
Resolute holds the common shares in Loncor for investment purposes and to support the Transaction and, depending on market or other conditions, may acquire additional securities of Loncor. If the Transaction does not proceed and/or the voting support agreement is terminated in accordance with its terms, Resolute may acquire additional securities of Loncor including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Resolute Canada will file an early warning report with the Canadian securities regulators with respect to the sale of its Loncor Gold shares and the voting support agreement pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, a copy of which will be available under the Loncor’s profile on SEDAR+ at www.sedarplus.ca or may also be obtained by calling Resolute at the number provided below.
Chris Eger, Chief Executive Officer, commented,
“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 African-focused gold portfolio. Key priorities include the development of the Doropo Project in Cote d’Ivoire and the extension of the Mako Mine in Senegal.”
Authorised by Chris Eger, Managing Director and Chief Executive Officer
Contact
| Resolute Matthias O’Toole Howes, Corporate Development and Investor Relations Manager Matthias.otoolehowes@resolutemining.com +44 203 3017 620 | Public Relations Jos Simson, Tavistock resolute@tavistock.co.uk +44 207 920 3150 +44 778 855 4035 Corporate Brokers Jennifer Lee, Berenberg +44 20 3753 3040 Tom Rider, BMO Capital Markets +44 20 7236 1010 |
Resolute Mining Limited ABN 39 097 088 689
Level 17, 2 The Esplanade, Perth, Western Australia 6000
FAQ**
How does Resolute Mining Ltd. RMGGF anticipate the sale of Loncor Gold shares to impact its overall investment strategy in the gold sector?
What specific growth initiatives does Resolute Mining Ltd. RMGGF plan to prioritize after realizing proceeds from the Loncor transaction?
In light of the proposed acquisition by Chengtun Mining, how does Resolute Mining Ltd. RMGGF view the regulatory approval process required for the transaction?
If the Loncor transaction does not proceed as planned, what alternative investment strategies does Resolute Mining Ltd. RMGGF have in mind for its holdings in Loncor?
**MWN-AI FAQ is based on asking OpenAI questions about Resolute Mining Ltd. (OTC: RMGGF).
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