Montage Gold (TSX: MAU) has formed yet another strategic partnership with a regional explorer in Cote d’Ivoire. The latest partnership is with ASX-listed Aurum Resources, who has a portfolio of exploration properties adjacent to Montage’s assets in the Boundiali greenstone belt.
The strategic arrangement will see Montage take a 9.9% interest in Aurum for a figure of roughly $10.4 million. Montage’s interest will be paid for via the issuance of 2.89 million common shares of Montage, while a number of parties related to Montage will also be investing alongside the company.
The Lundin family and their associates will be taking a 9.9% interest in Aurum under a non-brokered private placement, while Zhaojin Mining Industry Company will be increasing their interest in Aurum to 9.9%. Both are major investors in Montage.
The arrangement will see Aurum raise total proceeds of A$35.6 million at a price of A$0.356 a share. Proceeds from the offering will be used for resource definition drilling at Aurum’s Boundiali gold project, exploration drilling at the Napie gold project, as well as for the purchase of two diamond drill rigs.
Aurum’s Boundiali Gold project is found to the north of Montage’s gold project, and is contiguous to Barrick’s Boundiali property, where Barrick is currently working towards permitting the Fonondara Mine. A current mineral resource on the property has outlined a resource of 1.59 million ounces of gold at an average grade of 1.0 g/t across five deposits, with the geology said to be similar to Montage’s Kone. A 100,000 metre drill program is currently underway. A PEA is expected to be filed by year end on the project alongside an updated resource estimate.
The Napie project meanwhile has a resource estimate of 868,000 ounces of gold at average grades of 1.20 g/t, with those ounces spread across two deposits. The project is found in north central Cote d’Ivoire, with 30 kilometres of strike existing within a 224 square kilometre land package. 30,000 metres of drilling is currently planned for this year at the project.
“With our Koné project located immediately south of Aurum’s Boundiali gold project, both companies see significant opportunity for collaboration to enhance value creation for all our stakeholders. As construction at Koné continues to rapidly advance on budget with first gold pour well on track for Q2-2027, we remain focused on executing our strategy of creating a leading African gold producer,” commented Martino De Ciccio, CEO of Montage, on the transaction.
Montage Gold last traded at $3.97 on the TSX.
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