Loncor Closes Financings
TORONTO, ONTARIO, Oct 09, 2012 (Menafn - MARKETWIRE via COMTEX) --Loncor Resources Inc. (the "Company" or "Loncor") (nyse mkt:LON)LON is pleased to announce that it hasclosed the issuance and sale of 9,245,000 common shares of theCompany (the "Common Shares") at a price of Cdn1.05 per Common Sharefor aggregate gross proceeds of Cdn9,707,250 (the "Offering"). TheOffering was conducted by a syndicate of investment dealers (the"Underwriters"). The 9,245,000 Common Shares issued under theOffering include 645,000 Common Shares issued and sold pursuant tothe full exercise of the over-allotment option by the Underwriters.
The Offering was made by way of a short form prospectus dated October1, 2012 filed with securities regulatory authorities in all of theprovinces of Canada (other than Quebec). The short form prospectusand other documents filed by the Company and referred to therein areavailable under the Company's profile on SEDAR at www.sedar.com. TheCommon Shares were also offered on a private placement basis incertain jurisdictions outside of Canada.
Newmont Mining Corporation ("Newmont") has also completed, through anaffiliate of Newmont, a non-brokered private placement (the"Placement") of 4,850,000 common shares of the Company at theOffering price for aggregate gross proceeds of Cdn5,092,500,concurrent with the Offering. After giving effect to the completionof the Offering and the Placement, Newmont (through an affiliate) nowholds 14,550,000 (representing 19.81% on a non-diluted basis) of theoutstanding common shares of the Company and 1,000,000 common sharepurchase warrants of the Company, with each such warrant entitlingthe holder to purchase one common share of the Company at a price ofCdn2.30 until December 2012. The 4,850,000 common shares of theCompany issued under the Placement are subject to a four month "holdperiod", which expires on February 10, 2013, and the resale rules ofapplicable securities legislation.
Pursuant to the two financings, the Company has raised total grossproceeds of Cdn14,799,750.
Loncor intends to use the proceeds from the financings for theexploration and development of the Company's mineral properties inthe Democratic Republic of the Congo and for working capital andgeneral corporate purposes.
This press release does not constitute an offer to sell or asolicitation of an offer to buy any of the securities in the UnitedStates. The securities have not been and will not be registered underthe United States Securities Act of 1933, as amended, (the "U.S.Securities Act") or any state securities laws and may not be offeredor sold within the United States unless registered under the U.S.Securities Act and applicable state securities laws or an exemptionfrom such registration is available.
Loncor is a Canadian gold exploration company focused on two keyprojects in the Democratic Republic of the Congo (the "DRC") - theNgayu and North Kivu projects. The Company has exclusive gold rightsto an area covering 2,087 sq km covering part of the Ngayu Archaeangreenstone belt in Orientale province in the northeast portion of theDRC. Loncor also owns or controls 55 exploration permits in NorthKivu province, covering 17,760 square kilometres, located west of thecity of Butembo. Both areas have historic gold production. Led by ateam of senior exploration professionals with extensive Africanexperience, Loncor's strategy includes an aggressive drilling programto follow up on initial known targets as well as covering the entiregreenstone belt with regional geochemical and geophysical surveys.Additional information with respect to the Company's projects can befound on the Company's web site at www.loncor.com.
Forward-Looking Information: Statements in this press releaserelating to the use of proceeds from the financings and the Company'sexploration and development plans are forward-looking informationwithin the meaning of applicable Canadian securities laws.Forward-looking information is subject to a number of risks anduncertainties that may cause the actual results of the Company todiffer materially from those discussed in the forward-lookinginformation, and even if such actual results are realized orsubstantially realized, there can be no assurance that they will havethe expected consequences to, or effects on the Company. Factors thatcould cause actual results or events to differ materially fromcurrent expectations include, among other things, risks related tothe exploration stage of the Company's properties, marketfluctuations in prices for securities of exploration stage companies,the location of the Company's properties in the DRC, uncertaintiesrelating to the availability and costs of financing needed in thefuture, the possibility that future exploration or developmentresults will not be consistent with the Company's expectations,failure to establish estimated mineral resources (the Company'smineral resource figures are estimates and no assurance can be giventhat the indicated levels of gold will be produced), uncertaintiesrelated to fluctuations in commodity prices and equity markets andthe other risks disclosed under the heading "Risk Factors" andelsewhere in the Company's annual report on Form 20-F dated March 30,2012 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.Forward-looking information speaks only as of the date on which it isprovided and, except as may be required by applicable securitieslaws, the Company disclaims any intent or obligation to update anyforward-looking information, whether as a result of new information,future events or results or otherwise. Although the Company believesthat the assumptions inherent in the forward-looking information arereasonable, forward-looking information is not a guarantee of futureperformance and accordingly undue reliance should not be put on suchinformation due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Loncor Resources Inc.
Peter N. Cowley
President and Chief Executive Officer
44 (0) 790 454 0856
Loncor Resources Inc.
Arnold T. Kondrat
Executive Vice President
44 (0) 790 454 0856
Loncor Resources Inc.
Naomi Nemeth
Investor Relations
(416) 366-9189 or 1 (800) 714-7938
www.loncor.com
SOURCE: Loncor Resources Inc.
http://www.loncor.com
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