Montage Gold announces the acquisition of African Gold

Core Viewpoint - Montage Gold Corp. has entered into a binding Scheme Implementation Deed to acquire African Gold Limited, enhancing its portfolio with the Didievi project in Côte d'Ivoire, which is expected to strengthen its operational footprint in the region [2][4][7]. Company Overview - Montage Gold Corp. is focused on becoming a premier African gold producer, with its flagship Koné project in Côte d'Ivoire expected to enter production in Q2-2027, boasting an estimated mine life of 16 years and annual production of over 300,000 ounces of gold in the first eight years [22]. - African Gold Limited is an Australian-listed exploration company with a portfolio of properties in Côte d'Ivoire, including the Didievi project, which has multi-million ounce potential [24]. Transaction Details - Montage will acquire all issued shares of African Gold not already owned, with an implied fully diluted equity value of approximately US$170 million [4][11]. - The exchange ratio for the acquisition is set at 0.0628 of a Montage common share for each African Gold share, representing a 54% premium to the 10-day volume weighted average price of African Gold shares [4][7]. - Existing African Gold shareholders, excluding Montage, will own approximately 7.8% of the combined company on a fully diluted in-the-money basis [4][11]. Project Insights - The Didievi project hosts an Inferred Resource of 12.4 million tonnes at 2.5 g/t Au, containing approximately 989,000 ounces of gold, with significant exploration upside identified [3][7]. - Montage has conducted a 40,000-meter drilling program at the Didievi project, resulting in an increase in the resource estimate for the Blaffo Guetto deposit from 452,000 ounces to 989,000 ounces of gold [3][6]. Strategic Implications - The acquisition is expected to enhance Montage's operational capabilities and project pipeline in Côte d'Ivoire, leveraging its established exploration, permitting, and construction expertise [7][8]. - The transaction is seen as accretive, building on the momentum to create a leading African gold producer and delivering value for stakeholders [8]. Next Steps - The transaction is subject to customary closing conditions, including shareholder approvals and regulatory consents, with a timetable indicating key dates for meetings and implementation expected by late April 2026 [19][20][23].