Montage Gold Corp. (TSXV: MAU, OTCQX: MAUTF) has initiated a $9.2 million strategic investment in African Gold Limited (ASX: A1G) through a share exchange transaction aimed at advancing gold exploration and development in Côte d’Ivoire. This agreement strengthens Montage’s regional presence while providing operational control over African Gold’s flagship Didievi project.
The investment is structured in two tranches, with the total transaction valued at approximately $9.2 million. Montage will acquire 92,377,787 ordinary shares of African Gold at a price of A$0.07 per share, while African Gold will receive 2,026,388 common shares of Montage priced at C$2.87 per share. This exchange positions Montage as a significant shareholder in African Gold, with potential ownership of up to 19.9% upon completion of the second tranche.
The first tranche of the deal was successfully finalized on April 7, 2025, with Montage acquiring 46,019,641 ordinary shares of African Gold. In return, African Gold received 1,009,481 common shares of Montage, which are subject to a mandatory four-month hold period ending on August 8, 2025.
This initial phase establishes Montage’s ownership stake in African Gold at approximately 9%, granting it investor rights under the Share Subscription Agreement signed between the two companies. These rights will increase to 10% following the completion of the second tranche.
Montage and African Gold have established two significant agreements alongside the equity exchange. Through the Share Subscription Agreement, Montage secures investor rights, provided it maintains a minimum ownership threshold of 9% until the second tranche closes and 10% thereafter. Additionally, the Project Rights Agreement grants Montage operational control over exploration activities at the Didievi project until December 31, 2026, along with pre-emptive rights to acquire a 20% interest in the project and oversight of exploration expenditures.
These agreements position Montage to leverage its expertise and resources to accelerate exploration at Didievi while maintaining flexibility for future development.
The Didievi project is located in Côte d’Ivoire near established gold mines such as Allied Gold’s Bonikro and Perseus Mining’s Yaoure operations. It hosts an inferred resource of 4.93 million tonnes at an average grade of 2.9 g/t Au, containing approximately 452,000 ounces of gold. Recent drilling results have identified high-grade extensions along the Blaffo Guetto trend, further enhancing its resource potential.
Montage’s operational control over Didievi aligns with its broader strategy to consolidate assets in Côte d’Ivoire and build a multi-asset gold portfolio in West Africa.
The second tranche is expected to close in Q2 2025 following approval by African Gold shareholders. Upon completion, Montage’s ownership stake will increase further, solidifying its influence over African Gold’s operations and projects.
Montage Gold and African Gold have formed a strategic partnership to unlock Côte d’Ivoire’s gold mining potential, leveraging their respective strengths. For Montage, this collaboration expands its presence in West Africa and complements its flagship Koné project, which is set to produce over 300,000 ounces of gold annually starting in Q2 2027, with a projected mine life of 16 years. Meanwhile, African Gold benefits from Montage’s technical expertise and financial resources to advance its Didievi project into a high-grade gold-producing asset. The Didievi project, located in central Côte d’Ivoire, boasts a Maiden Inferred Resource of 4.93 million tonnes at 2.9 g/t gold, representing 452,000 ounces of gold. African Gold’s ongoing exploration efforts continue to reveal promising results, enhancing the project’s multi-million-ounce potential.
This partnership appears to underscores both companies’ commitment to fostering local economic development and strengthening Côte d’Ivoire’s position as a key player in African gold production.
