Montage Gold (TSXV: MAU) is expanding its presence in the Ivory Coast, announcing this morning that it has obtained a 19.9% interest in Australia listed-explorer African Gold Limited under a new strategic partnership.
The investment will see Montage spend $6.3 million to acquire the interest in the Cote d’Ivoire focused explorer, in exchange for 2.19 million common shares of Montage under an equity swap agreement. The investment is being conducted alongside a larger offering, which will see African Gold raise $1.66 million in gross proceeds. Post-swap, African Gold is expected to hold a 0.6% interest in Montage.
African Gold’s flagship project consists of the high grade Didievi project, which is found near to Allied Gold’s Bonikro and Agbaou mines. The project currently contains a mineral resource estimate of 452,000 inferred ounces of gold at an average grade of 2.9 g/t.
Montage is set to become the operator of the project, responsible for directing exploration activities and administration of the project through to the end of 2026, while African Gold will be responsible for paying for exploration. Montage is also to be assigned pre-emptive rights to acquire a 20% interest in the project currently owned by minority shareholders.
As part of the strategic partnership with African Gold, Montage’s EVP of Exploration, Silvia Bottero, will be appointed as a non-executive director of African Gold, while Montage CEO Martino De Ciccio will be named as a strategic advisor to the board.
“Our strategic investment in African Gold follows a thorough review of potential partnerships in Côte d’Ivoire, based on a value-driven approach that considers risk-adjusted geological potential and is supported by technical due diligence,” commented Martino De Ciccio, CEO of Montage.
Montage Gold last traded at $2.98 on the TSX Venture.
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