Loncor Gold Provides Update on Arrangement Transaction with Chengtun Mining

The most recent news release from December 1, 2025, provides an update on the previously announced Plan of Arrangement transaction, whereby Loncor Gold Inc. is to be acquired by Chengtun Mining Group Co., Ltd. through its subsidiary Chengtun Gold Ontario Inc. for C$1.38 cash per share. The release states that the transaction is pending two primary conditions: approval by Loncor shareholders at a special meeting scheduled for December 11, 2025, and approval by the Ontario Superior Court of Justice (Commercial List). The news also includes a routine update on the security situation in eastern DRC and confirms that operations and drilling at the Adumbi project are continuing.

This news is a procedural update confirming that the acquisition of Loncor Gold by Chengtun Mining is progressing as planned. The core transaction, an all-cash offer of C$1.38 per share, was initially announced on October 14, 2025, and was a "Material - Game Changer" event, as it provided a clear, premium exit for shareholders. The current release, nearly two months later, merely reiterates the steps required for closing the deal.

The C$1.38 per share offer represented a 33% premium over the 30-day volume-weighted average trading price (VWAP) and a 16% premium over the closing price on October 10, 2025. The market has largely priced in the acquisition, with Loncor's shares trading consistently near the offer price since the initial announcement. The current price of C$1.35 (as of November 28, 2025) reflects a high degree of confidence in the deal's completion.

The update regarding the security situation in the DRC and continued drilling at Adumbi is largely secondary to the M&A process. While ongoing operations are important, their impact on the stock price is minimal now that a definitive acquisition agreement is in place. The successful execution of the shareholder meeting and court approval are the only factors that will significantly affect the stock price by confirming or derailing the acquisition. Given the unanimous board recommendation and significant shareholder support (approximately 38% committed including Resolute Mining and Executive Chairman Arnold Kondrat), these approvals are highly anticipated. Therefore, this news is a positive, but routine, confirmation of the transaction's trajectory rather than a new material development.

Loncor Gold Inc. is a Canadian gold exploration company primarily focused on the Ngayu greenstone belt in the northeast of the Democratic Republic of the Congo (DRC). The company's strategy had been to drill towards a 5 million ounce high-grade resource at its flagship Adumbi deposit, part of the larger Imbo Project.

Adumbi Project Highlights (as per September 2025 presentation and news): - Resources: Indicated Mineral Resource of 1.88 million ounces of gold (28.19 Mt @ 2.08 g/t Au) and an Inferred Mineral Resource of 1.78 million ounces of gold (20.83 Mt @ 2.65 g/t Au), totaling 3.66 million ounces. These resources were delineated within a US$1,600/oz open pit shell. - Exploration Target: An underground exploration target below the open pit of 8.9-9.6 Mt @ 4.7-4.9 g/t Au (down to 800m depth) was identified. - Development Status: The project has a mining permit and a detailed Preliminary Economic Assessment (PEA) from December 2021, outlining a potential open pit and underground operation. LOM AISC was estimated at US$950/oz, and average annual production at 303,000 oz gold over 10.3 years. Initial capital was US$530M. - Recent Drilling: The company consistently reported strong deep drilling results (e.g., LADD027, LADD028, LADD029, LADD030, LADD031) indicating thick and well-mineralized banded ironstone formation (BIF) at depth, reinforcing the underground resource potential. - Other Projects: Loncor also holds interests in other DRC assets like Kitenge (191 koz Inferred @ 6.60 g/t Au) and Manzako (122 koz Inferred @ 5.00 g/t Au).

With the pending acquisition by Chengtun Mining, the strategic direction and operational focus for Loncor as an independent entity are concluding, and the value for current shareholders is being crystallized at C$1.38 per share.