(Kitco News) – Montage Gold (TSXV: MAU) announced Wednesday that it has entered into an agreement with a subsidiary of Barrick Gold and a subsidiary of Endeavour Mining, pursuant to which Montage will acquire a 100% interest in the Mankono-Sissédougou JV project in Côte d’Ivoire.
The company said that the Mankono gold project consists of three properties contiguous to the company’s Koné gold project (“KGP”) in Côte d’Ivoire.
Under the terms of the agreement, Montage will acquire 100% of the issued and outstanding shares of Mankono Exploration Limited (“MEL”), which indirectly holds Mankono, for the total consideration of C$30,000,000.
According to a press-release, the total consideration comprises of C$14,500,000 in cash, 22,142,857 common shares of Montage, and the granting of a 2% NSR royalty (allocated 70% to Barrick and 30% to Endeavour based on their relative ownership interest in MEL).
The company added that closing of the transaction is subject to, among other things, the granting by the government of Côte d’Ivoire of the Gbongogo exploration permit which is currently an exploration permit application which has been submitted by a subsidiary of MEL.
Montage is a Canadian-based precious metals exploration and development company focused on opportunities in Côte d’Ivoire. The company’s flagship property is the Koné gold project, located in northwest Côte d’Ivoire, which currently hosts a probable mineral reserve of 161.1Mt grading 0.66g/t for 3.42M ounces of gold.
The company released the results of a definitive feasibility study on the Koné gold project on February 14, 2022, outlining a 15-year gold project producing 3.06M ounces of gold with average annual production of 207koz, and peak production of 320koz.