Resolute Mining has agreed to support the sale of its 31.45 million shares in Loncor Gold to Chengtun Mining Group for C$1.38 per share, a move that will strengthen its balance sheet and accelerate key African projects.
- Resolute holds 31.45 million Loncor shares valued at approximately US$31 million
- Shares to be sold to Chengtun Mining Group in an all-cash deal at C$1.38 per share
- Transaction expected to close by Q1 2026, subject to regulatory approvals
- Resolute commits to vote in favor of the sale under a voting support agreement
- Sale proceeds to support development of Doropo Project and Mako Mine extension
Resolute Mining's Strategic Shareholding Move
Resolute Mining has announced a significant update regarding its investment in Loncor Gold Inc., confirming its intention to support the sale of its entire 31.45 million shareholding to Chengtun Mining Group. The transaction, valued at approximately C$43.4 million (US$31 million), is structured as an all-cash deal at C$1.38 per share and is expected to complete by the first quarter of 2026, pending regulatory approvals.
Financial and Strategic Implications
This move marks a pivotal moment for Resolute, as the sale proceeds are earmarked to bolster its balance sheet and underpin its strategic growth initiatives across Africa. The company’s CEO, Chris Eger, highlighted that the capital will be directed towards advancing key projects such as the Doropo Project in Côte d’Ivoire and extending operations at the Mako Mine in Senegal. These projects are central to Resolute’s vision of expanding its footprint in the African gold mining sector.
Voting Support and Regulatory Compliance
Resolute has entered into a voting support agreement, committing to vote its shares in favor of the transaction, signaling strong alignment with the deal’s terms. The company will also file an early warning report with Canadian securities regulators, ensuring transparency and compliance with National Instrument 62-103. This regulatory step is standard for transactions of this nature and will be publicly accessible via SEDAR+.
Market and Investor Considerations
For investors, this announcement clarifies Resolute’s capital allocation priorities and its focus on African assets. The sale of Loncor shares reduces exposure to Canadian-listed gold assets while freeing up capital to accelerate growth in regions where Resolute has operational control. The timing of the transaction, expected within the next six months, will be closely watched for its impact on Resolute’s financial position and project timelines.
Looking Ahead
As the transaction progresses through regulatory hurdles, market participants will be keen to see how Resolute deploys the proceeds and whether this strategic reallocation translates into tangible production growth and value creation. The company’s focus on Côte d’Ivoire and Senegal underscores a broader trend of mining companies consolidating and optimizing their African portfolios amid evolving market dynamics.
Bottom Line?
Resolute’s decisive move to monetise its Loncor stake sets the stage for accelerated growth in Africa’s gold sector.
Questions in the middle?
- Will regulatory approvals proceed smoothly to meet the Q1 2026 closing target?
- How will Resolute allocate the sale proceeds across its African projects in detail?
- What impact will this share sale have on Resolute’s near-term production and cash flow?