Montage Gold Strengthens Position in Sanu Gold Corporation
Montage Gold's Strategic Move in the Mining Sector
Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU, OTCQX: MAUTF) is making headlines by asserting its participation rights in Sanu Gold Corporation. With the recent private placement announced by Sanu, Montage has successfully exercised its rights, thus maintaining its equity interest in this promising venture.
Details of the Participation Right Exercise
In taking this strategic step, Montage was issued a significant number of common shares of Sanu, totaling 7,664,294 shares priced at C$0.28 each. This move was funded through the issuance of 848,222 common shares of Montage at a deemed price of C$2.53 each, representing approximately C$2.1 million. This financial maneuver marks a 19.5% ownership stake in Sanu for Montage, with an option to increase this to 19.9% in future financing rounds.
Further Implications of the Investment
This investment aligns with Montage's commitment to driving value for its shareholders. By engaging in Sanu’s non-brokered private placement, Montage not only enhances its equity interest but also secures potential future growth opportunities tied to Sanu’s projects and exploration efforts.
Impact on Sanu Gold's Exploration Plans
The recent influx of capital from the private placement is earmarked for various critical exploration initiatives. Sanu plans to allocate these funds towards enhanced exploration endeavors, including advanced ground geophysics and an expanded drilling program targeting the Daina and Diguifara Gold Exploration Permits in Guinea, West Africa. Additional efforts may include acquiring new exploration permits, further bolstering Sanu's operational capabilities and overall market presence.
Broader Participation in the Placement
Alongside Montage, notable stakeholders such as AngloGold Ashanti plc and members of the Lundin Family have participated in the placement, maintaining their pro-rata equity interests in Sanu, both standing at approximately 10.0%. This collective support underscores a robust confidence in Sanu's strategic direction and growth potential.
About Montage Gold Corp.
Montage Gold Corp. is carving out its position as a leading player in the African gold mining sector, primarily through its flagship Koné project located in Côte d’Ivoire. According to the Updated Feasibility Study released recently, the Koné project boasts a remarkable estimated mine life of 16 years and is projected to produce over 300,000 ounces of gold annually in its first eight years, with production anticipated to kick off in 2027.
Quality Assurance in Exploration
The rigors of Montage’s exploration activities and assessments are safeguarded by the expertise of Silvia Bottero, a Qualified Person under NI 43-101. Her professional background ensures that the scientific and technical data related to Montage's endeavors meet industry-leading standards.
Contact Information for Stakeholders
Investor Relations: For inquiries regarding investments, interested parties can contact Jake Cain, Strategy & Investor Relations Manager, via email or phone.
Media Relations: Media representatives are encouraged to connect with John Vincic at Oakstrom Advisors for media inquiries.
Regulatory Inquiries: For compliance-related questions, Kathy Love, the Corporate Secretary, is available for assistance.
Frequently Asked Questions
What did Montage Gold Corp. announce recently?
Montage Gold announced the exercise of its participation rights in Sanu Gold, enhancing its equity interest in the process.
How many shares did Montage issue for the participation?
Montage issued 848,222 common shares at a deemed price of C$2.53 each to acquire 7,664,294 shares of Sanu.
What percentage of Sanu does Montage own now?
Montage currently holds a 19.5% ownership stake in Sanu Gold Corporation.
What will the proceeds from Sanu's placement be used for?
The proceeds will support various exploration efforts, drilling programs, and the acquisition of new exploration permits.
Who are other participants in the Sanu placement?
AngloGold Ashanti plc and the Lundin Family also participated in the placement to maintain their equity interests in Sanu.
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