Montage Gold Exercises Participation Rights in Sanu Gold
Rhea-AI Summary
Montage Gold Corp. (TSXV: MAU, OTCQX: MAUTF) has exercised its participation rights to maintain its 19.5% equity stake in Sanu Gold following Sanu's non-brokered private placement. Montage acquired 7,664,294 shares of Sanu at C$0.28 per share, paid through the issuance of 848,222 Montage shares at C$2.53 per share, representing a total consideration of approximately C$2.1 million.
The transaction maintains Montage's right to top up its ownership to 19.9% in future financings. AngloGold Ashanti and the Lundin Family have also participated to maintain their respective 10% ownership positions. The proceeds will fund Sanu's exploration activities in Guinea, including ground geophysics and drilling programs at the Daina and Diguifara permits, as well as potential new permit acquisitions.
Positive
- Maintains strategic 19.5% ownership in Sanu Gold with option to increase to 19.9%
- Strong institutional backing with AngloGold Ashanti and Lundin Family maintaining their positions
- Investment provides exposure to additional exploration potential in Guinea
Negative
- Share dilution through issuance of 848,222 new Montage shares
- C$2.1 million capital allocation in early-stage exploration company
News Market Reaction
On the day this news was published, MAUTF gained 1.89%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, Canada, April 14, 2025 (GLOBE NEWSWIRE) -- April 14, 2025 — Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU, OTCQX: MAUTF) is pleased to announce that it has exercised its participation right to maintain its equity interest in Sanu Gold Corporation (“Sanu”) (CSE:SANU; OTCQB:SNGCF) following Sanu’s non-brokered private placement as announced on March 25, 2025 (the “Placement”).
As a result, Montage has been issued 7,664,294 common shares of Sanu at a price of C
AngloGold Ashanti plc and the Lundin Family and their associates have also participated in the Placement to largely maintain each of their respective pro rata equity interests in the Company, of approximately
The net proceeds from the Placement will be allocated by Sanu to further exploration efforts, including ground geophysics and the expansion of drilling programs on Sanu’s Daina and Diguifara Gold Exploration Permits in Guinea, West Africa, as well as the Bantabaye Exploration Permit. Additionally, funds may support the acquisition of potential new exploration permits and will provide general working capital for Sanu.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ABOUT MONTAGE GOLD
Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné project, located in Côte d’Ivoire, at the forefront. Based on the Updated Feasibility Study published in 2024 (the “UFS”), the Koné project has an estimated 16-year mine life and sizeable annual production of +300koz of gold over the first 8 years and is expected to enter production in Q2-2027.
QUALIFIED PERSONS STATEMENT
The scientific and technical contents of this press release related to Montage have been verified and approved by Silvia Bottero, BSc, MSc, a Qualified Person pursuant to NI 43-101. Mrs. Bottero, EVP Exploration of Montage, is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP), a member of the Geological Society of South Africa and a Member of AusIMM.
CONTACT INFORMATION
| For Investor Relations Inquiries: Jake Cain Strategy & Investor Relations Manager jcain@montagegold.com +44-7788-687-567 | For Media Inquiries: John Vincic Oakstrom Advisors john@oakstrom.com +1-647-402-6375 | For Regulatory Inquiries: Kathy Love Corporate Secretary klove@montagegold.com +1-604-512-2959 |
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, “Forward-looking Statements”). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as “will”, “intends”, “proposed” and “expects” or similar expressions are intended to identify Forward-looking Statements. Forward-looking Statements in this press release include statements related to the activities and results of an exploration activities, the Company’s objectives of achieving first gold pour in the second quarter of 2027; the Company’s mineral reserve and resource estimates; the timing and amount of future production from the Koné Gold Project; anticipated mining and processing methods of the Koné Gold Project; anticipated mine life of the Koné Gold Project.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There is no assurance that any economic satellite deposits will be discovered, and if discovered ever developed or mined. There can be no assurance that any Forward-looking Statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, and in delineating new mineral reserve and resource estimates, including but not limited to, assumptions underlying the production estimates not being realized, incorrect cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates being lower than expected, unexpected adverse changes to geotechnical or hydrogeological considerations, or expectations in that regard not being met, unexpected failures of plant, equipment or processes (including construction equipment), delays in or increased costs for the delivery of construction equipment and services, unexpected changes to availability of power or the power rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d’Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, delays in or failure to receive access agreements or amended permits and other risk factors set forth in the Company’s Annual Information form available at www.sedarplus.ca, under the heading “Risk Factors”. The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
FAQ
What percentage ownership does Montage Gold (MAUTF) now hold in Sanu Gold?
How many shares did Montage Gold (MAUTF) acquire in Sanu's private placement?
What is the total value of Montage Gold's (MAUTF) investment in Sanu's placement?
How will Sanu use the proceeds from the private placement?
