Montage Gold signs deal to acquire remaining African Gold shares

Montage Gold has signed a binding strategy implementation deed (SID) with African Gold to get each issued shares of African Gold that it does not already own, taxable to assorted conditions.

This transaction volition adhd the resource-stage Didievi task successful Côte d’Ivoire to Montage’s portfolio, reinforcing its presumption successful the state alongside the ongoing Koné project.

Following a strategical concern announced connected 24 March 2025, Montage became the relation of the Didievi project.

This enabled Montage to deepen its knowing of the project's geological imaginable and measure its viability arsenic a stand-alone operation.

Since Montage’s archetypal investment, the Didievi task has progressed with a 40,000m drilling programme and metallurgical testing.

At the Blaffo Guetto deposit wrong Didievi, the inferred assets has accrued from 4.93 cardinal tonnes (mt) astatine 2.9 grams per tonne (g/t) golden (452,000oz) to 12.4mt astatine 2.5g/t golden (989,000oz), with further targets assessed done drilling.

Montage CEO Martino De Ciccio said: “With the physique of our Koné task tracking connected fund and good connected schedule, we are pleased to further heighten our portfolio done the summation of the high-quality Didievi project, thereby strengthening our beingness successful Côte d’Ivoire.

“As relation of the Didievi project, we person been capable to derisk this transaction by conducting further drilling, which has resulted successful an summation successful the Blaffo Guetto deposit assets portion confirming mineralisation astatine caller targets, successful parallel to conducting metallurgical testwork.

"We person seen the imaginable for the Didievi task to go a high-quality stand-alone cognition and we look guardant to leveraging our highly experienced squad to rapidly unlock its afloat potential."

Through the partnership, Montage purchased 92,377,787 mean shares of African Gold astatine an African Gold stock terms of A$0.07 ($0.045), giving it a 17.3% stake.

The acquired implied afloat diluted equity worth for African Gold, excluding shares already held by Montage, is astir $170m.

Under the presumption of the transaction, each African Gold afloat paid mean stock not presently owned by Montage volition beryllium exchanged for 0.0628 of a Montage communal share.

After completion, African Gold shareholders, excluding Montage, volition ain astir 7.8% of the combined institution connected a fully-diluted, in-the-money basis.

African Gold CEO Adam Oehlman said: “Through the concern with Montage announced earlier this year, we person had the accidental to enactment intimately with the Montage squad and person beardown assurance successful their quality to rapidly unlock worth astatine the Didievi project. This transaction positions our shareholders to payment from Montage’s exploration and operation expertise portion gaining vulnerability to the near-term accumulation of the Koné project."