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Perseus Mining divests shares in Montage Gold

The company plans to use the proceeds from the Montage share sale to strengthen its balance sheet.

Umesh Ellichipuram August 22 2024

Perseus Mining has offloaded 33 million common shares in Montage Gold, a gold exploration and development company, to BMO Nesbitt Burns (BMO).

The shares were sold for C$1.86 each.

The sale of Montage shares was completed via a bought deal, yielding net proceeds of C$61.3m ($45m).

Perseus acquired the Montage shares as part of its acquisition of Orca Gold.

Orca’s key asset was a 70% interest in the Block 14 gold project, since renamed the Meyas Sands gold project, in Sudan. Perseus regarded its shareholding in Montage as non-core.

Perseus will utilise the proceeds from the Montage share sale to strengthen its balance sheet.

This follows its recent $57.9m acquisition of a stake in Predictive Discovery, which owns the Bankan gold project in Guinea.

Perseus chairperson and CEO Jeff Quartermaine said: “We are very pleased to have successfully completed the sale of the Montage shareholding at a price that will largely offset the cost of our recent acquisition of a strategic stake in Predictive’s Bankan gold project, which we believe is a potentially attractive gold development project.”

Perseus Mining is an Australian mining company with operations at three gold mines in Africa.

In April 2024, Perseus declared that its off-market bid for OreCorp is now unconditional and will stand as its best and final offer, unless a competing bid is received.

The updated proposal exceeded the initial cash offer of A$0.55, valuing the transaction at A$258m.

OreCorp accepted Perseus’s proposal as superior and noted that unless Silvercorp makes any revisions, it will advise its shareholders to accept the offer.

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