Montage Gold has successfully secured $825 million in Côte d’Ivoire to finance the construction of the country’s largest gold mine, projected to achieve an annual production capacity of 301,000 ounces during its first eight years of operation. This initiative is expected to significantly enhance gold production in Ivory Coast in the long term.
In a press release dated October 24, 2024, Montage announced that the funding was obtained through a mix of loans and advance sales of future gold production.
This financing was made possible through partnerships with one of its shareholders, China’s Zijin Mining, and Wheaton Precious Metals, a Canadian firm specializing in precious metals streaming.
Wheaton is contributing $625 million through advance gold purchases, along with an additional $75 million in loan facilities. The $625 million financing agreement specifically targets the Koné and Gbongogo deposits at the future mine site.
According to the terms of the agreement, Wheaton will purchase 19.5% of the payable gold from these deposits until a total of 400,000 ounces is delivered. After reaching this milestone, the purchase percentage will decrease to 10.8% until another 130,000 ounces are delivered, and subsequently drop to 5.4% for the remainder of the mine’s life.
Zijin Mining is providing $75 million under the advance gold sale agreement, along with an additional $50 million in loan facilities. Under the streaming agreement, Zijin will receive 3.1% of the payable gold from the Koné project until 54,000 ounces are delivered. After that point, Zijin’s share of gold production will be adjusted to 1.3% for the mine’s operational lifespan.
