Loncor Resources reports that its subsidiary, Adumbi Mining, has been restructured as per the requirements of the OHADA (Organization for the Harmonization of Business Law in Africa) Uniform Act relating to commercial companies.
OHADA Uniform Acts provide for a system of common business laws which have been adopted by seventeen West and Central African countries, including the DRC.
The restructuring has resulted in Loncor increasing its interest in Adumbi Mining to 84.68%, minority shareholders holding 5.32% and the DRC 10%.
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The DRC was allocated 10% in accordance with the requirements of the new DRC Mining Code enacted in 2018.
Also as a result of the restructuring, Adumbi Mining will now operate as “Adumbi Mining S.A.” rather than Adumbi Mining SARL.
At the Imbo Project (which is held by Adumbi Mining), inferred mineral resources delineated to date are 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), such that, with Loncor’s 84.68% interest, Loncor’s attributable ounces at the Imbo Project have increased to 2,117,000 ounces of gold.
In addition, the Company owns 100% of the Makapela deposit, where 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 549,000 ounces of gold (3.22 million tonnes grading 5.30 g/t Au) has been delineated.
Arnold Kondrat, CEO of Loncor, states:
“Further consolidation of the Adumbi Mining shareholding moves Loncor one step closer to releasing maximum value for our shareholders with drilling soon to commence at our key Adumbi deposit – the drilling looking to add significantly to the 2,500,000 ozs of inferred resources already within Imbo.”