Montage Gold Repurchases 1% NSR Royalty on Its Koné Project

About this update from Montage Gold Corp.

[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU, OTCQX: MAUTF) is pleased to announce that it has repurchased a 1.0% net smelter returns royalty (“Royalty”) on its Koné project, in Côte d’Ivoire, for a total cash consideration of US$10 million. Martino De Ciccio, CEO of Montage, commented: “Given the strong liquidity sources recently secured, we are pleased to have the strategic and financial flexibility to exercise our right to repurchase a 1.0% royalty on our Koné project, as part of our prudent capital allocation strategy. We believe that this investment offers the ability to significantly enhance the value unlocked by our exploration efforts as many identified exploration targets are covered by the royalty repurchased. Moreover, we are delighted with the results of the ongoing 60,000-meter drilling programme as it provides confidence in our ability to deliver on our recently announced Measured and Indicated Resource discovery target of at least 1 million ounces at a grade of more than 1 g/t Au, which would be 50% higher compared to the current Koné deposit grade, to be achieved before the commencement of production. This would represent significant returns on our exploration investment and aligns with our strategic objective of boosting production from the commencement of production while maintaining an annual production of at least 300koz for more than 10 years. We are excited with the momentum generated across our business and look forward to continuing to rapidly progress our strategy of creating a premier African gold producer while delivering value for all our stakeholders.” The Royalty covers the properties previously held under Mankono Exploration Limited (“Mankono” or the “Property”) which Montage purchased from Barrick Gold Corporation (“Barrick”) and Endeavour Gold Corporation (“Endeavour”) in November 2022. As part of the acquisition, Barrick and Endeavour were granted a 1.4% and 0.6% net smelter return royalty, respectively, based on their relative ownership interest in the Property. The combined 2.0% royalty was subject to a 50% buyback option for a fixed cash consideration of US$10.0 million, to be exercised by the second anniversary of the acquisition of Mankono. Consequently, the transaction reduces the royalty on the Pr...

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