Business
Montage Gold Announces Strategic Investment By Zijin Mining; C$170M Equity Raise Launched To Advance The Kone Project
HIGHLIGHTS: C$170 million equity raise launched at C$1.75/share which represents a 1.1% discount to the closing price of July 15, 2024 Zijin to make a strategic
About this update from Montage Gold Corp.
[{"type":"text","content":" HIGHLIGHTS: C$170 million equity raise launched at C$1.75/share which represents a 1.1% discount to the closing price of July 15, 2024 Zijin to make a strategic investment of C$57.3 million to obtain a 9.9% stake in Montage as part of the equity raise Lundin Family Trusts to invest C$43.0 million to increase its stake from 17.7% to 19.9% as part of the equity raise VANCOUVER, BC, July 16, 2024 /CNW/ - Montage Gold Corp. (\"Montage\" or the \"Company\") (TSXV: MAU) (OTCQX: MAUTF) is pleased to announce that it has launched a brokered private placement of up to 97,142,857 common shares of the Company (the \"Common Shares\") at a price of C$1.75 per Common Share for aggregate gross proceeds of up to C$170 million (the \"Offering\"), which will include a strategic investment from Zijin Mining Group Co. Ltd. (together with its affiliates, \"Zijin\"), in addition to the Lundin Family Trusts increasing their stake from 17.7% to 19.9%. Martino De Ciccio, CEO of Montage, commented: \"We are pleased to welcome Zijin as a major shareholder, following their in-depth due diligence and site visit, along with an increased investment in Montage by the Lundin Family. These investments strengthen our ability to deliver on our strategy to become a premier multi-asset African gold producer and validate the potential of our Koné gold project in Côte d'Ivoire. With a strengthened balance sheet, we will be well positioned to rapidly continue unlocking value for our stakeholders by progressing the Koné project towards an anticipated construction launch by Q1-2025, while continuing to progress our exploration strategy of delineating higher-grade targets that can be slotted into the mine plan from the commencement of the operation.\" Under the Offering, Zijin has agreed to purchase 32,714,829 Common Shares which would result in a 9.9% ownership interest in Montage upon completion of the Offering, and trusts controlled by the Lundin family (the \"Lundin Family Trusts\") have agreed to purchase 24,588,865 Common Shares, which will allow the Lundin Trusts to increase their ownership interest in Montage from 17.7% to 19.9% upon completion of the Offering. Insiders of the Company also intend to participate in the Offering. In connection with the Offering, the Company has entered into an agreement with Stifel and SCP Resource Finance LP as co...