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Montage Gold (TSXV: MAU) is raising C$15 million ($11m) through a bought deal private placement of 21.4 million common shares at a price of C$0.70 per share.
Net proceeds will be used for exploration and drilling at the Koné gold project and for work to update the feasibility study.
A syndicate of underwriters led by Canaccord Genuity has been granted an over allotment option for up to 1.1 million shares at the same price to raise an additional C$750,400.
Montage produced a definitive feasibility study in February 2022. The study gave the project an after-tax net present value (100%) of $746 million and an after-tax internal rate of return of 35%. All-in sustaining costs over the life of the mine are expected to be $933 per ounce.
The pre-production capex, including contingency, is $543.9 million, and payback will be achieved after 2.7 years.
The Koné gold project is located about 350 km north of Yamoussoukro, Côte d’Ivoire. Montage says it hopes this project will become the centre of a new gold district, with the potential to exploit numbers small, high-grade satellite deposits and improve project economics.
