/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Feb. 1 /CNW/ - Loncor Resources Inc. ("Loncor" or "the
Company") (TSX-V Symbol: "LN") is pleased to announce that it has
completed its previously announced concurrent brokered and non-brokered
private placement equity financings. Pursuant to a "bought deal"
private placement financing conducted by GMP Securities L.P. as lead
underwriter, together with Cormark Securities Inc. and Raymond James
Ltd., the Company has issued 8,500,000 common shares of the Company at
a price of C$2.35 per share, resulting in aggregate gross proceeds of
C$19,975,000 (the "Brokered Placement"). The Company has also issued,
by way of non-brokered private placement, to Newmont Mining Corporation
of Canada Limited, 1,700,000 common shares of the Company at a price of
C$2.35 per share for aggregate gross proceeds of C$3,995,000 (the
The Company intends to use the net proceeds from both the Brokered
Placement and the Non-Brokered Placement for the exploration of the
Company's mineral properties in the Democratic Republic of the Congo
(the "DRC") and for working capital and general corporate purposes.
In consideration for their services, the Company has paid to the
underwriters for the Brokered Placement, in aggregate, a cash fee of
C$1,198,500 (which is equal to 6% of the gross proceeds of the Brokered
Placement), and has granted to such underwriters, in aggregate, 510,000
broker warrants (which are equal to 6% of the number of common shares
sold under the Brokered Placement). Each broker warrant entitles the
holder to purchase one common share of the Company at a price of C$2.35
for a period of two years from closing.
All of the securities of the Company issued and issuable in connection
with the Brokered Placement and the Non-Brokered Placement are subject
to a four month "hold period" and the resale rules of applicable
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered under
the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
Loncor is a gold exploration company with two projects in the DRC: the
Ngayu and North Kivu projects. Additional information with respect to
the Company's projects can be found on the Company's web site at www.loncor.com.
Forward-Looking Information: Statements in this press release relating
to the proposed use of proceeds from the financings are forward-looking
information within the meaning of applicable Canadian securities laws.
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. Factors that
could cause actual results or events to differ materially from current
expectations include, among other things, risks related to the
exploration stage of the Company's properties, market fluctuations in
prices for securities of exploration stage companies, the location of
the Company's properties in the DRC, uncertainties relating to the
availability and costs of financing needed in the future, the
possibility that future exploration results will not be consistent with
the Company's expectations, uncertainties related to fluctuations in
commodity prices and equity markets and the other risks involved in the
mineral exploration business. 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Loncor Resources Inc.
For further information:
please visit our website at www.loncor.com or contact: Peter N. Cowley, President and Chief Executive Officer, Telephone: + 44 (0) 790 454 0856; or Arnold T. Kondrat, Executive Vice President, or Martin Jones, Vice President, Corporate Development, Telephone: (416) 366-2221 or 1 (800) 714-7938.