Loncor Gold Announces Shareholder Approval of Acquisition by Chengtun Mining

On December 11, 2025, Loncor Gold announced that its shareholders have overwhelmingly approved the acquisition of the company by Chengtun Mining Group Co., Ltd. via a plan of arrangement. At a special meeting, 99.70% of the votes cast were in favour of the special resolution. The transaction, which will see Chengtun acquire all of Loncor's shares for C$1.38 in cash per share, is now pending a final order from the Ontario Superior Court of Justice and the satisfaction of other customary closing conditions.

This shareholder approval is a crucial and material step forward in finalizing the C$261 million all-cash acquisition by Chengtun Mining, originally announced on October 14, 2025. While the positive outcome was widely expected—given that shareholders representing approximately 38% of the company (including major holders Resolute Mining and Executive Chairman Arnold Kondrat) had already entered into voting support agreements—this official vote removes a significant condition and substantially de-risks the transaction.

The investment thesis for Loncor has shifted entirely from an exploration story to a special situation arbitrage play. The stock has traded in a tight range just below the C$1.38 offer price since the deal was announced, reflecting the market's high confidence in the deal closing. The current spread of C$0.07 (approximately 5.3%) between the recent price of C$1.31 and the offer price represents the market's perceived risk of failure and the time value of money until the expected closing in Q1 2026.

This news is a material positive confirmation. It locks in a significant premium for shareholders who held the stock prior to the M&A speculation, which began in July 2025 when the stock was trading around C$0.60-C$0.70. For current holders, it solidifies the path to receiving the cash consideration. The focus now shifts entirely to the final regulatory and court approvals.

Loncor Gold Inc. is a Canadian gold exploration company focused on the Ngayu Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (DRC). Its flagship asset is the Imbo Project, which contains the Adumbi deposit. Prior to the acquisition announcement, the company's strategy was to expand the Adumbi resource to over five million ounces, positioning it as a potential Tier 1 asset. Adumbi has an Indicated Resource of 1.88 million ounces of gold and an Inferred Resource of 1.78 million ounces. The company had been actively drilling to expand the resource at depth below the open pit shell outlined in a 2021 Preliminary Economic Assessment (PEA). With the pending acquisition, the company's focus has shifted to completing the transaction.