The purpose of the New Barrick JV is to conduct exploration on the JV Permit properties to evaluate possible development and mining of such properties.
The Ngayu gold belt lies approximately 220 kilometres from the Kibali gold mine, operated by
The terms of the New Barrick JV are similar to Loncor's ongoing joint venture agreement with Barrick which covers over 1,894 km2 of ground in the Ngayu gold belt including, among other properties, certain properties in the Imva area. Under the New Barrick JV, Barrick will manage and fund all exploration of the JV Permit properties until the completion of a pre-feasibility study. Once the joint venture committee has determined to move ahead with a full feasibility study, a special purpose vehicle ('SPV') would be created to hold the specific discovery areas. Subject to the DRC's free carried interest requirements, Barrick would retain 65% of the SPV with Adumbi Mining holding the balance of 35%. Adumbi Mining would be required, from that point forward, to fund its pro-rata share of the SPV in order to maintain its 35% interest or be diluted.
The closing of the New Barrick JV, which is expected to occur by
About
Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the North East of the
In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over the Makapela deposit. Loncor's Makapela deposit (which is 100%-owned by Loncor) has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). Adumbi and two neighbouring deposits hold an inferred mineral resource of 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest in the project.
Cautionary Note to U.S. Investors
Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding future exploration by the New Barrick JV and potential gold discoveries, mineral resource estimates, potential mineral resource increases, drill targets, exploration results, future drilling and other future exploration, and future development) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Contact:
Tel: + 1 (416) 366 7300
(C) 2020 Electronic News Publishing, source