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Loncor Gold ( (TSE:LN) ) just unveiled an announcement.
Loncor Gold has completed a C$267 million going-private transaction under which Chengtun Gold Ontario, an affiliate of China’s Chengtun Mining Group, acquired all outstanding Loncor common shares at C$1.38 per share. As part of the deal, Loncor’s shares will be delisted from the Toronto and Frankfurt stock exchanges and will cease trading on the OTCQX, and the company has applied to terminate its reporting issuer status in Canada.
Following completion of the transaction, Chengtun now owns 183,660,846 Loncor shares, representing 100% of the company’s equity, and has installed Shing Yip Iu as the sole director after the resignation of the previous board. The move tightens Chengtun’s grip on gold and battery-metal assets in the Democratic Republic of the Congo and underscores continued consolidation in African mining assets by larger, diversified resource groups seeking exposure to both precious and energy-transition metals.
The most recent analyst rating on (TSE:LN) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Loncor Gold stock, see the TSE:LN Stock Forecast page.
Spark’s Take on TSE:LN Stock
According to Spark, TipRanks’ AI Analyst, TSE:LN is a Neutral.
The score is held back primarily by weak financial performance (no revenue, ongoing losses and cash burn), partly offset by low leverage. Technicals are supportive with price above major moving averages and positive momentum. Corporate events are a meaningful positive due to the advancing acquisition process and strong drill results, while valuation support is limited because earnings are negative and no dividend yield is provided.
To see Spark’s full report on TSE:LN stock, click here.
More about Loncor Gold
Loncor Gold Inc. is a Canadian gold exploration company focused on the Ngayu Greenstone Gold Belt in northeastern Democratic Republic of the Congo, where its main asset is the Imbo Project. The acquirer, Chengtun Mining Group Co., Ltd., is a Shanghai-listed miner specializing in energy and base metals such as copper, cobalt and nickel, and has identified gold and other precious metals as a strategic growth area, with existing operations in the DRC including the Kalongwe copper-cobalt mine.
Average Trading Volume: 299,665
Technical Sentiment Signal: Buy
Current Market Cap: C$241.4M
Learn more about LN stock on TipRanks’ Stock Analysis page.