Montage expands Koné with C$30m deal to buy Barrick-Endeavour JV
Canada-based precious metals explorer and developer Montage Gold is expanding its Koné gold project, in Côte d'Ivoire, with the acquisition of a 100% interest in the Mankono-Sissédougou joint venture (JV) project from Barrick Gold and Endeavour Mining for C$30-million in cash and shares.
Mankono consists of three properties – the Sissédougou exploration permit, the Gbongogo permit application and the Sisséplé permit application – all lying within the perimeter of the Koné project.
The Gbongogo permit application area has been explored by Randgold Resources (now part of Barrick) since 2013 and the Sissédougou and Sisséplé areas by Endeavour and previously La Mancha Resources since 2010.
“This is an important step for Montage, with the addition of Mankono, our consolidated land position at the Koné gold project will increase to over 2 250 km2 in one of the most prolific belts in West Africa,” said CEO Hugh Stuart.
He stated that previous exploration had identified a number of target areas and Montage intended to explore these targets aggressively with the objective of adding high-grade satellite feed into Koné.
In terms of the transaction, Montage would acquire the JV project for C$14.5-million in cash and 22.14-million shares, priced at C$0.70 each, as well as a 2% net smelter return royalty.
The consideration would be split pro-rata on a 70:30 basis between Barrick and Endeavour.
To pay the cash portion of the consideration, Montage announced that it would raise C$20-million on a bought-deal private placement basis of 28.6-million subscription receipts.
Closing of the transaction is subject to the award of the Gbongogo exploration permit, which is currently in application. The agreement provides for an outside closing date of December.
Barrick and Endeavour would own 9.93% and 4.26% of Montage, respectively, post-closing.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation