Sanu Gold stock rises as Montage, Lundin maintain backing

Sanu Gold (CSE: SANU) saw its stock price surge to its highest in two years on Tuesday after the West Africa-focused junior announced a private placement backed by Montage Gold (TSXV: MAU) and the Lundin Family.

The placement would see Sanu issue approximately 42.85 million common shares priced at C$0.28 each for total proceeds of C$12 million. The financing was initially set at C$10 million but upsized later in the day.

Sanu Gold’s shares gained 16% at C$0.36 apiece during the afternoon trading, after hitting a 52-week high of C$0.38 earlier. Its market capitalization is estimated at nearly C$140 million ($98 million).

Both Montage and Lundin have indicated their intention to participate in the placement and maintain their respective 19.9% and 10% interests. The two parties first became Sanu shareholders in late 2024 after investing a total of C$10 million, joining AngloGold Ashanti (NYSE: AU) as major stakeholders.

The new financing is expected to support Sanu’s exploration activities in Guinea, where it holds three projects within the Siguiri Basin area, host to several producing mines and major discoveries such as AngloGold’s Siguiri and Nordgold’s Lefa. To date, the company has defined gold-bearing structures of several kilometres in strike length on each of its gold exploration permits.

Earlier this year, Sanu said its drilling on the Daina permit has resulted in the discovery of a new high-grade zone, with a highlight intercept of 51 metres grading 3.11 grams per tonne. The first-ever program at the Diguifara permit, located 20 km from the Siguiri gold mine, also confirmed wide mineralization, it added.