African Gold Ltd (ASX:A1G) Announces Strategic Partnership with Montage Gold
Strategic Investment and Share Swap
African Gold Ltd (ASX:A1G) has entered into a strategic partnership with Montage Gold Corp. Montage Gold and its insiders will acquire a 19.9% stake in African Gold through a share swap of 2,026,388 Montage shares valued at approximately A$6,466,445 for 92,377,787 African Gold shares. Additionally, a placement of 12,371,429 African Gold shares to Montage insiders will raise A$866,000. African Gold will also conduct a non-brokered private placement for up to a 5.0% stake, raising approximately A$1,842,323.
Exploration and Project Development
The partnership aims to accelerate exploration at African Gold’s Didievi gold project and its broader tenement portfolio in Côte d’Ivoire. Montage Gold will oversee the exploration funding, while African Gold will manage the costs through a joint technical committee.
Leadership and Advisory Roles
Montage Gold’s EVP of Exploration, Silvia Bottero, will join African Gold’s Board as a Non-Executive Director. Montage CEO Martino De Ciccio will serve as a strategic advisor. Both executives will receive 5 million options each, aligning their interests with shareholder value and the company’s long-term growth objectives.
Executive Comments
Adam Oehlman, Chief Executive Officer of African Gold, stated, “We are excited to partner with Montage Gold given their extensive exploration track record and strong presence in Côte d’Ivoire. This collaboration offers an exciting opportunity to unlock exploration value at notably our flagship Didievi project. Furthermore, Montage’s robust technical due diligence process strengthens our belief that the Didievi project is highly prospective. We are very pleased with the ongoing 10,000-metre drill programme at our Didievi project and look forward to further drilling the property this year given our strengthened financial position.
“As part of this partnership, we are pleased to welcome Silvia Bottero to the African Gold board. With over 20 years of experience in mining, Silvia has a proven track record in driving greenfield discoveries and advancing brownfield projects, particularly in Africa and over the last decade she has been credited with the discovery of over 15Moz of M&I gold resources in Côte d’Ivoire.
“We are also excited to welcome Martino De Ciccio as a strategic advisor to African Gold given his extensive expertise and value creation track record. Moreover, Martino has a profound understanding of the African mining landscape, being recently recognized as one of the 20 most influential people in the African mining sector by Africa Business. Over the last year, under Martino’s leadership, Montage’s market capitalization grew from C$140 million to over C$1 billion given their success in obtaining environmental and mining permits, staffing a high-quality team, obtaining high profile strategic investors, securing over US$950 million in financing, delivering strong exploration results, and launching construction of their project.
“We look forward to working closely with Montage Gold, to maximise the potential of our assets in Côte d’Ivoire.”
Martino De Ciccio, CEO of Montage, commented, “We are very pleased to form a strategic partnership with African Gold and work alongside them to rapidly unlock exploration value across their highly attractive portfolio in Côte d’Ivoire, including the high-grade Didievi project, by leveraging our presence and expertise in the country. Our strategic investment in African Gold follows a thorough review of potential partnerships in Côte d’Ivoire, based on a value-driven approach that considers risk-adjusted geological potential and is supported by technical due diligence.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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