Announces sale of the Makapela property in the DRC for $13.5 Loncor Gold Inc. / TSX: LN
PR Title
Announces sale of the Makapela property in the DRC for $13.5M
FRC Opinion
Positive – Makapela hosts 1.2 Moz of gold, implying that LN is selling the project for $15/oz vs the sector average of $46/oz (range: $8 to $83/oz). Although the sale price falls within the lower range of comparable valuations, the deal offers LN substantial non-dilutive financing for advancing its flagship Adumbi gold project. Adumbi, which hosts 4 Moz gold, is 220 km from Barrick’s (TSX: ABX) Kibali mine – one of the largest gold mines in Africa. A PEA on the Adumbi open-pit deposit returned an AT-NPV5% of US$600M, using US$1,600/oz gold. LN is trading at just 5% of the AT-NPV5%. Adumbi has potential to produce over 300 Koz ever year, making it a mid-sized gold mine.