Major Miner Bids $261M for Loncor, 81% of Our Valuation

*Disseminated on behalf of South Star Battery Metals, Fortune Minerals Limited, Monument Mining Limited, Lake Resources, Denarius Metals, TNR Gold, Geomega Resources, Loncor Gold, and Grid Metals. See the bottom of this report for other important disclosures.

We review the acquisition bid received by Loncor Gold (TSX: LN), a junior we had earlier flagged as a prime M&A candidate. Additionally, we highlight notable developments from our coverage universe, spanning juniors in gold, copper, rare earths, nickel, and lithium.

Over the past six months, our Top Picks have delivered an average return of 87%, significantly outperforming the benchmark’s 61% gain. Visit our website to view the full list of Top Picks by sector https://www.researchfrc.com/top-picks. *Past performance is not indicative of future performance.

Updates on Resource Companies Under Coverage

Analyst Opinion: Positive - Chengtun Mining Group (SHSE: 600711/MCAP: $7B), a Shanghai-listed miner with global operations across copper, cobalt, nickel, and gold, has agreed to acquire LN in an all-cash transaction valued at $261M, offering $1.38/share, a 33% premium to the 30-day volume weighted average trading price. Shareholders holding 38% of LN’s shares have already agreed to support the deal. We view the deal positively. The $1.38/share offer represents 81% of our July 2025 fair value estimate of $1.70/share, when LN traded at just $0.63/share. Pending shareholder, court, and regulatory approvals, the deal is expected to close by Q1-2026.

Analyst Opinion: Positive – Los Azules hosts a large, open-pittable copper deposit. The FS returned an after-tax NPV8% of US$2.9B, and an IRR of 20%, based on US$4.35/lb copper. The project is expected to produce 451 Mlbs of copper annually in its first five years, with a life-of-mine (21 years) average of 327 Mlbs. We believe the robust FS results should encourage McEwen Mining to continue advancing the project, in which TNR holds a 0.36% NSR royalty. McEwen plans to begin commercial production by 2029. We project annual royalty revenue of US$6M for TNR, based on a conservative long-term copper price of US$3.75/lb, rising to US$8M at current spot prices. TNR also expects its first royalty payment from Ganfeng Lithium (SZSE: 002460) shortly, following the start of production at the Mariana lithium project, where it holds a 1.35% NSR.

Analyst Opinion: Positive – GMA has signed an agreement with Rio Tinto to advance and license its Bauxite Residue Valorization Technology, which Rio Tinto aims to use to reduce bauxite waste, and recover valuable materials such as iron, rare earths, and titanium from alumina refining. The deal includes up to $4.5M in payments to GMA. We believe the partnership marks a major milestone for GMA as it validates and begins commercializing its proprietary technology with a global industry player, positioning the company for future royalty-based revenue, and broader licensing opportunities.

Analyst Opinion: Positive – The financing will be subscribed by an undisclosed strategic investor, and an existing institutional shareholder, with proceeds directed toward exploration across Grid’s portfolio, primarily at the early-stage Falcon West cesium property. The company’s portfolio in the Bird River area includes four key projects: Makwa (Ni-Cu-PGM-Co, under JV with Teck Resources/TSX: TECK), Mayville (Cu-Ni), Falcon West (Li-Cs), and Donner (Li-Cs), reflecting its strategic focus on advancing critical mineral assets.

FRC Top Picks

The table below highlights last week’s top five performers from our Top Picks. The best performer was South Star Battery Metals (TSXV: STS), which rose 44%. The company owns graphite projects in the U.S. and Brazil. Resource stocks with critical mineral projects in the U.S. are experiencing positive sector sentiment, supported by recent developments. We believe the U.S. has a pressing need for domestic graphite production, as it imports 100% of its graphite consumption.

Top Five Weekly Performers	WoW Returns
South Star Battery Metals Corp. (STS.V)	44.10%
Fortune Minerals Limited (FT.TO)	13.90%
Monument Mining Limited (MMY.V)	10.00%
Lake Resources NL (LKE.AX)	6.30%
Denarius Metals Corp. (DMET.NE)	5.70%

* Past performance is not indicative of future performance (as of Oct 14, 2025)

Our top picks have outperformed the benchmark (TSXV) in five out of six time periods listed below.

Performance by Sector

Total Return	1 Week	1 mo	3 mo	6 mo	3 yr	Since launch
Mining	8.30%	27.20%	29.90%	39.50%	55.20%	36.10%
Cannabis	N/A	N/A	N/A	N/A	-36.20%	-23.60%
Tech	-10.60%	15.80%	145.70%	941.70%	2.90%	99.60%
Special Situations (MIC)	-3.10%	-7.10%	-6.30%	14.30%	13.70%	-3.00%
Private Companies	N/A	N/A	N/A	N/A	24.20%	64.10%
Portfolio (Total)	2.70%	16.60%	35.70%	86.60%	43.80%	37.10%
Benchmark (Total)	0.40%	12.90%	28.10%	60.50%	73.50%	13.90%
Portfolio (Annualized)	-	-	-	-	12.90%	2.70%
Benchmark (Annualized)	-	-	-	-	20.20%	1.10%

1. Since the earliest initiating date of companies in the list of Top Picks (as of Oct 14, 2025)

2. Green (blue) indicates FRC's picks outperformed (underperformed) the benchmark.

3. Past performance is not indicative of future performance.

Our complete list of top picks (updated weekly) can be viewed https://www.researchfrc.com/top-picks

*Disclaimers - Annual fees ranging from $15,000 to $35,000 have been paid to FRC by South Star Battery Metals, Fortune Minerals Limited, Monument Mining Limited, Lake Resources, Denarius Metals, TNR Gold, Geomega Resources, Loncor Gold, and Grid Metals. for research coverage and distribution of reports. FRC or companies with related management, and Analysts, do not hold shares/securities in the companies mentioned in this report.

Major Miner Bids $261M for Loncor, 81% of Our Valuation

Major Miner Bids $261M for Loncor, 81% of Our Valuation

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