Montage Gold (Montage) has entered a strategic partnership with Aurum Resources, bolstering its presence along the Boundiali greenstone belt in Côte d’Ivoire, home to Montage’s Koné gold project.
The collaboration involves Montage acquiring a 9.9% interest in Aurum through the issuance of 2.89 million common shares, representing a deemed consideration of approximately C$10.4m ($7.5m).
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The partnership will see Montage investing alongside Zhaojin Mining and the Lundin Family, each securing a 9.9% interest in Aurum through a non-brokered private placement.
Aurum, valued at A$82.7m ($53.49m) before the offering, is expected to raise A$35.6m in aggregate gross proceeds.
Aurum’s Boundiali and Napié gold projects are adjacent to Montage’s Koné project.
The Boundiali project boasts an inferred resource of 50 million tonnes (mt) at 1 gram per tonne (g/t) gold, containing 1.59 million ounces (moz) of gold.
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By GlobalDataA 100,000m drill programme targets the high-grade Nyangboue gold deposit, with an updated resource estimate and preliminary feasibility study anticipated by year-end.
The Share Exchange Transaction between Montage and Aurum will result in Montage obtaining Aurum ordinary shares and Aurum receiving Montage Shares, equating to an 0.8% ownership in Montage.
The transaction, based on both companies’ share prices, requires approval from Aurum shareholders and the Toronto Stock Exchange, which is expected to close in late June this year.
Proceeds from the offering will fund drilling at the Boundiali project, exploration at the Napié project, and advance technical studies and permit applications.
This development follows Montage Gold’s previous C$170m equity raise in July last year, which included investments from Zijin Mining Group and Lundin Family Trusts, aimed at developing the Koné gold project, which has received a mining permit from the Côte d’Ivoire Government.
