Business
Montage Gold Closes C$35 Million Non-Brokered Private Placement
ABIDJAN, Côte d'Ivoire, March 12, 2024 /CNW/ - Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCQX: MAUTF) is pleased to announce that it has clo
About this update from Montage Gold Corp.
[{"type":"text","content":" ABIDJAN, Côte d'Ivoire, March 12, 2024 /CNW/ - Montage Gold Corp. (\"Montage\" or the \"Company\") (TSXV: MAU) (OTCQX: MAUTF) is pleased to announce that it has closed its previously announced non-brokered private placement, pursuant to which the Company sold an aggregate of 50,300,000 common shares of the Company (the \"Common Shares\") at a price of C$0.70 per Common Share for gross proceeds of approximately C$35.2 million (the \"Offering\"), which was upsized from C$20.0 million. Martino De Ciccio, CEO of Montage Gold, commented, \"We are very pleased with the strong investor demand received for our upsized non-brokered private placement, led by a significant investment from the Lundin Family along with notable investments from directors and officers of Montage. We look forward to progressing our strategy of building a premier multi-asset African gold producer, with our Koné project at the forefront.\" The net proceeds of the Offering will be used to advance the Koné project towards construction decision, conduct further exploration on nearby targets, and for working capital and general corporate purposes. As part of the private placement, a trust controlled by the Lundin Family subscribed for approximately 50% of the Offering and certain directors and officers of Montage subscribed for an aggregate of 7.4% the Offering. The Common Shares issued pursuant to the Offering are subject to a four-month hold period under applicable Canadian securities laws commencing on the date hereof and expiring on July 13, 2024. The Offering remains subject to the final acceptance of the TSX Venture Exchange. Insiders of the Company participated in the Offering. Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the Offering constitutes a \"related party transaction\" given the fact that insiders of the Company subscribed for Common Shares. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, specifically: (i) the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b), as the Common Shares are not listed on a market specified in MI 61-101, and (ii) the minority shareholder approval requirement of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61- 101, a...