Canadian company Montage Gold is continuing its expansion in West Africa with two major announcements this week. Firstly, it is making progress with the construction of what will become the largest gold mine in Côte d'Ivoire, scheduled to come on stream in 2027. Secondly, it has signed a strategic agreement with African Gold, becoming the largest shareholder in this junior mining company, which is developing the Didievi gold project, also in Côte d'Ivoire.
This agreement marks a key step in Montage Gold's strategy to consolidate its presence in a country already recognised for its mining potential. At the same time, the company is expanding its regional portfolio, following an investment in Sanu Gold in Guinea in early December, demonstrating its ambition to become a key player in West African gold mining.
The agreement with African Gold is based on an equity swap. Montage will issue up to 2.19 million ordinary shares, valued at C$6.3 million (approximately US$4.4 million), while African Gold will issue shares to Montage. On completion of the transaction, Montage will own 19.9% of African Gold, which in turn will own 0.6% of Montage.
In addition to this exchange, Montage Gold is taking over operational control of the Didievi project, becoming the operator until 31 December 2026. It will manage the exploration work, although the budget and expenses will remain under the supervision and responsibility of African Gold's board of directors. In addition, African Gold is transferring its pre-emptive rights for a 20% interest in the Didievi project to Montage, thereby strengthening the Canadian company's position.
"We are very pleased to form a strategic partnership with African Gold and work alongside them to rapidly unlock exploration value in their very attractive portfolio in Côte d'Ivoire, including the high-grade Didievi project, leveraging our presence and expertise in the country," said Martino De Ciccio, CEO of Montage Gold.
Strategically located close to Allied Gold's Bonikro and Agbaou mines, as well as Perseus Mining's Yaouré mine, the Didievi project has significant potential. It currently hosts an inferred mineral resource estimated at 452,000 ounces of gold. African Gold is carrying out a 10,000-metre drilling programme to refine this estimate and better define mineable reserves.
Meanwhile, Montage Gold is moving ahead with its flagship project in Côte d'Ivoire, which will become the country's largest gold mine. With commissioning scheduled for 2027, this initiative is expected to strengthen Côte d'Ivoire's position among African gold producers, a key sector for the national economy.
This dual move, the development of a major mine and the acquisition of a strategic stake in Didievi, illustrates Montage Gold's desire to combine organic growth and partnerships to maximise its footprint in the region. As the West African mining industry attracts more and more investors, Montage Gold is positioning itself as an emerging leader.