Business
Montage Gold Closes C$180 Million Private Placement
VANCOUVER, BC, Aug. 14, 2024 /CNW/ - Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU, OTCQX: MAUTF) is pleased to announce the closing of its previou
About this update from Montage Gold Corp.
[{"type":"text","content":" VANCOUVER, BC, Aug. 14, 2024 /CNW/ - Montage Gold Corp. (\"Montage\" or the \"Company\") (TSXV: MAU, OTCQX: MAUTF) is pleased to announce the closing of its previously announced brokered private placement of 102,857,143 common shares of the Company (the \"Common Shares\") at a price of C$1.75 per Common Share for gross proceeds of C$180 million (the \"Offering\"). The Offering was led by Stifel and SCP Resource Finance LP as co-lead agents and joint bookrunners (the \"Lead Agents\"), on behalf of a syndicate of agents including Cormark Securities Inc., Raymond James Ltd., and Beacon Securities Limited (collectively, the \"Agents\"). Following completion of the Offering, Trusts controlled by the Lundin family (the \"Lundin Family Trusts\") and Zijin Mining Group Co. Ltd. (together with its affiliates, \"Zijin\") now hold ownership interests in Montage of 19.9% and 9.9%, respectively. The net proceeds of the Offering will be used for development expenditures at the Company's Koné Project, exploration, and for working capital and general corporate purposes. In consideration of the services rendered by the Agents in connection with the Offering, the Company paid the Agents a cash commission equal to C$2,091,496.23 representing 5% of the gross proceeds from the Offering (other than in respect of the Common Shares subscribed for by the Lundin Family Trusts, Zijin and the majority of the president's list subscribers, for which no commission was payable). The Common Shares issued pursuant to the Offering were issued pursuant to available exemptions from the registration and prospectus requirements of applicable securities legislation and are subject to a four-month hold period under applicable Canadian securities laws commencing on the Closing and expiring on December 15, 2024. The Offering remains subject to final approval of the TSX Venture Exchange. The investment by the Lundin Family Trusts and insiders of the Company in the Offering constitute \"related party transactions\" within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61–101 Protection of Minority Security Holders in Special Transactions (\"MI 61–101\"). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61–101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 in re...