Montage Gold signs deal to acquire remaining African Gold shares

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Montage Gold has signed a binding scheme implementation deed (SID) with African Gold to acquire all issued shares of African Gold that it does not already own, subject to various conditions.

This transaction will add the resource-stage Didievi project in Côte d’Ivoire to Montage’s portfolio, reinforcing its position in the country alongside the ongoing Koné project.

Following a strategic partnership announced on 24 March 2025, Montage became the operator of the Didievi project.

This enabled Montage to deepen its understanding of the project's geological potential and evaluate its viability as a stand-alone operation.

Since Montage’s initial investment, the Didievi project has progressed with a 40,000m drilling programme and metallurgical testing.

At the Blaffo Guetto deposit within Didievi, the inferred resource has increased from 4.93 million tonnes (mt) at 2.9 grams per tonne (g/t) gold (452,000oz) to 12.4mt at 2.5g/t gold (989,000oz), with additional targets assessed through drilling.

Montage CEO Martino De Ciccio said: “With the build of our Koné project tracking on budget and well on schedule, we are pleased to further enhance our portfolio through the addition of the high-quality Didievi project, thereby strengthening our presence in Côte d’Ivoire.

“As operator of the Didievi project, we have been able to derisk this transaction by conducting further drilling, which has resulted in an increase in the Blaffo Guetto deposit resource while confirming mineralisation at new targets, in parallel to conducting metallurgical testwork.

"We have seen the potential for the Didievi project to become a high-quality stand-alone operation and we look forward to leveraging our highly experienced team to rapidly unlock its full potential."

Through the partnership, Montage purchased 92,377,787 ordinary shares of African Gold at an African Gold share price of A$0.07 ($0.045), giving it a 17.3% stake.

The acquired implied fully diluted equity value for African Gold, excluding shares already held by Montage, is around $170m.

Under the terms of the transaction, each African Gold fully paid ordinary share not currently owned by Montage will be exchanged for 0.0628 of a Montage common share.

After completion, African Gold shareholders, excluding Montage, will own around 7.8% of the combined company on a fully-diluted, in-the-money basis.

African Gold CEO Adam Oehlman said: “Through the partnership with Montage announced earlier this year, we have had the opportunity to work closely with the Montage team and have strong confidence in their ability to rapidly unlock value at the Didievi project. This transaction positions our shareholders to benefit from Montage’s exploration and construction expertise while gaining exposure to the near-term production of the Koné project."

In May this year, Montage formed a strategic partnership with Aurum Resources, strengthening its footprint along Côte d’Ivoire’s Boundiali greenstone belt, home to Montage’s Koné gold project.

"Montage Gold signs deal to acquire remaining African Gold shares " was originally created and published by Mining Technology, a GlobalData owned brand.

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