Montage Gold Secures $825 Million for Construction of Côte d’Ivoire’s Largest Gold Mine
Montage Gold has successfully raised $825 million in Côte d’Ivoire to finance the construction of the country’s largest gold mine, which is expected to achieve an annual production capacity of 301,000 ounces during its first eight years of operation. This project is set to significantly bolster gold production in Ivory Coast in the long term.
In a press release dated October 24, 2024, Montage announced that the funding was secured through a combination of loans and advance sales of future gold production.
This financing involved collaboration with one of its shareholders, China’s Zijin Mining, as well as Wheaton Precious Metals, a Canadian company specializing in precious metals streaming.
Wheaton is providing $625 million through advance gold purchases and an additional $75 million in loan facilities. The $625 million financing agreement specifically pertains to the Koné and Gbongogo deposits located at the future mine site.
According to the agreement, Wheaton will purchase 19.5% of payable gold from these deposits until 400,000 ounces are delivered.
Once that milestone is reached, the purchase percentage will decrease to 10.8% until an additional 130,000 ounces are delivered, and subsequently drop to 5.4% for the remainder of the mine’s life.
Zijin Mining is contributing $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 payable gold from the Koné project until 54,000 ounces are delivered. After this point, Zijin’s share of gold production will be adjusted to 1.3% for the remainder of the mine’s operational life.
