Montage Gold Corp. [TSXV:MAU, OTCQX: MAUTF] has entered into a strategic partnership with Sanu Gold Corporation [CSE:SANU], attracted by its exploration properties in Guinea, obtaining a 19.9% interest in Sanu through the issuance of 2.3 million basic shares of Montage equating to C$5.5 million.
Montage joins existing strategic investor AngloGold Ashanti which acquired a 14.0% stake in Sanu in September 2024. Montage will be investing alongside the Lundin family and their associates who will obtain a 10% interest in Sanu by participating in the non-brokered private placement with an investment of C$2.7 million.
Through the offering, Sanu will obtain aggregate gross proceeds of approximately C$10. million based on a share issuance price of C$0.072. Montage management and certain insiders also intend to participate in the offering.
Gold exploration permits in Guinea
Sanu owns three highly attractive gold exploration permits in Guinea, located within the Siguiri Basin in proximity to AngloGold Ashanti’s Siguiri gold mine, Nordgold’s Lefa gold mine, Predictive Discovery’s Bankan gold project, and exploration tenements held by Endeavour Mining. Sanu is currently undertaking a 10,000-meter drill programme at its Diguifara and Daina properties, comprising of up to 120 holes, where historical exploration efforts resulted in the identification of a number of mineralised gold bearing structures.
Sanu currently holds a 75% interest in each of the three properties, which remain subject to earn in agreements. Sanu retains the right to acquire up to 85% of each of the properties. The three properties are adjacent to established mining infrastructure and high-quality, multi-million ounce deposits and producing gold mines.
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Sanu said it expects to use the net proceeds of the offering to advance exploration, including geophysics and drilling on the company’s Daina, Diguifara and Bantabaye gold exploration permits, and for general and administrative purposes.
Martino De Ciccio, CEO of Montage, told shareholders the deal will allow Montage to leverage Sanu’s established presence in the country to accelerate its greenfield exploration strategy.
“Based on our prudent capital allocation framework, our strategic investment follows a thorough review of potential partnerships in West Africa in addition to technical due diligence,” De Ciccio said.
The Montage CEO said he was still pleased with the strong momentum generated across the business and was looking forward to unlocking significant exploration value at the miner’s flagship Koné project, in addition to sourcing future growth through greenfield exploration success. In line with this objective and further to evaluating strategic partnerships, Montage reported that is has also made considerable progress to stake highly prospective exploration grounds in Côte d’Ivoire, to reinforce its presence in the country and leverage the expertise of the well-established exploration team.
The Montage leadership is comprised of seasoned West African gold professionals and this further highlights the potential of Sanu’s projects in Guinea. De Ciccio will join the Sanu board of directors.
