Resolute Mining to sell Loncor shares under Chengtun agreement

(Alliance News) - Resolute Mining Ltd on Wednesday said it will sell its Loncor Gold Inc shares valued at approximately USD31 million to Chengtun Mining Group Co.

The London-based miner targeting African gold said it will sell 31.5 million common shares in Loncor following its sale agreement with Chengtun Mining through its wholly-owned subsidiary Chengtun Gold Ontario Inc.

Chengtun Mining will acquire Loncor shares at CAD1.38 each, in an all-cash transaction totalling approximately CAD43.4 million, around USD31 million.

Resolute Mining said it expects the transaction to close no later than the first quarter of financial 2026.

Resolute Mining said it 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.

Chief Executive Officer Chris Eger said: "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."

Shares in Resolute Mining rose 1.4% to 56.27 pence on Wednesday afternoon in London.

By Roya Shahidi, Alliance News reporter

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