Loncor Gold Advances Toward Chengtun Acquisition Amid Drilling Success

Loncor Gold's shares have exhibited stability with slight upward movements in recent trading sessions, including a 0.8% rise to $0.9779 on January 21, 2026, on reduced volume of 46,193 shares compared to the average 121,115. The stock's 50-day moving average stands at $0.96 and 200-day at $0.77, reflecting a bullish longer-term trend amid a market cap of approximately $177.5 million. Trading activity remains subdued, potentially influenced by the impending acquisition, which limits liquidity as investors await finalization.

The pivotal development driving price stability and sentiment is the ongoing acquisition by China's Chengtun Mining, announced in October 2025 at C$1.38 per share—a 33% premium to the 30-day VWAP at the time. A court granted final approval in December 2025, paving the way for Q1 2026 closing, after which shares will delist from the TSX. Major shareholders like Resolute Mining (18% stake) and Arnold Kondrat (17%) support the deal, with Resolute expecting $31 million inflow soon. This transaction values Loncor's Adumbi deposit highly, estimated at 3.66 million ounces indicated resources, marking Chengtun's entry into gold mining.

Market sentiment skews positive, fueled by the acquisition premium and continued exploration success. On January 15, 2026, Loncor reported multiple high-grade gold intersections from its Adumbi drill program, extending mineralization and reinforcing project potential in the DRC's Ngayu greenstone belt. Analyst updates are optimistic: StockTradersDaily issued 'Strong' ratings across near, mid, and long-term horizons as of January 25, 2026, with a buy signal near C$1.08; Morningstar's quantitative fair value suggests significant upside at CA$9.85 versus current CA$1.35. Media coverage highlights low debt (0.01 debt-to-equity) and strong liquidity (quick ratio 3.42), offsetting current unprofitability (P/E -32.6).

In recent months, gold price surges to record highs in early 2026, driven by global economic uncertainty and geopolitical tensions, have provided tailwinds for juniors like Loncor, amplifying Adumbi’s appeal. Broader DRC mining dynamics, including Chinese firms' aggressive expansion (e.g., Zijin and Chengtun), underscore strategic interest in African gold belts. Resolute Mining's Q4 2025 updates confirm no tax on Loncor proceeds, signaling smooth execution, while political decisions in the region have occasionally pressured sentiment but not derailed the deal.