By: Ecofin agency

Loncor Gold, operator of the Adumbi gold deposit in the Democratic Republic of Congo, announced on October 14 it has entered into an arrangement agreement to be acquired by Chinese mining company Chengtun Mining. The transaction, valued at about C$261 million (around $186 million), is expected to close in the first quarter of 2026, subject to regulatory approvals.

According to information obtained by Ecofin Agency, the deal will be settled entirely in cash. Chengtun Mining plans to purchase all outstanding common shares of Loncor at C$1.38 per share. Completion requires approval from Loncor shareholders, the Toronto Stock Exchange, and the Ontario Superior Court of Justice.

The agreement follows an unsolicited offer received by Loncor earlier this year. A 2021 Preliminary Economic Assessment (PEA) estimated that the Adumbi project, which hosts 3.66 million ounces of gold resources, could produce 303,000 ounces annually over 10.3 years, requiring an initial investment of $392 million.

The acquisition comes amid a sustained rise in global gold prices. According to the World Gold Council, the metal is trading above a record $4,000 per ounce, up more than 50% since the start of 2025, fueling a wave of mergers in the sector, including deals involving Aurum Resources and Mako Gold in Côte d’Ivoire.