Montage Gold announced a strategic partnership with ASX-listed African Gold, acquiring up to a 19.9% interest in the company in a deal valued at about C$6.3-million.
The investment aims to tap into African Gold’s exploration portfolio in Côte d’Ivoire, including its high-grade Didievi project.
Montage will acquire its stake through the issuance of up to 2.19-million of its common shares. This move aligns with a broader non-brokered private placement that will see African Gold issue 26.3-million shares to subscribers, generating about C$1.66-million in gross proceeds. Prior to the transaction, African Gold had a market capitalisation of about A$29.4-million.
Located near Allied Gold’s Bonikro and Agbaou mines and Perseus’ Yaoure mine, African Gold’s Didievi project hosts an inferred resource of 4.93-million tonnes at 2.9 g/t gold, containing 452 000 oz of gold. A 10 000-m drill programme at the site is ongoing, returning high-grade intercepts along the Blaffo Guetto trend.
As part of the agreement, Montage executive VP of exploration Silvia Bottero will join African Gold’s board as a nonexecutive director, while Montage assumes operatorship of the Didievi project.
“We are very pleased to form a strategic partnership with African Gold and work alongside them to rapidly unlock exploration value across their highly attractive portfolio in Côte d’Ivoire,” Montage CEO Martino De Ciccio said in a statement.
“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.”
African Gold CEO Adam Oehlman welcomed the collaboration. “We are excited to partner with Montage Gold given their extensive exploration track record and strong presence in Côte d’Ivoire. This collaboration offers an exciting opportunity to unlock exploration value at notably our flagship Didievi project.”
Under the agreement, Montage gains a right of first refusal on the Didievi project and African Gold’s rights to acquire the Angoda permit. The companies will also establish a joint technical committee to oversee exploration efforts.
The share exchange transaction and private placement are expected to close in the second quarter of 2025, subject to shareholder approval and customary conditions.