By Peter Kennedy
Montage Gold Corp. [MAU-TSXV], a company led by former executives of Red Back Mining Inc., said Friday October 23 that it has closed an initial public offering that raised $30 million from the sale of 27.3 million common shares priced at $1.10 per share.
The shares began trading today on the TSX Venture Exchange under the symbol MAU. In early afternoon trading, Friday, the shares were up 4.5% or $0.05 to $1.15 on volume of 1.26 million.
Montage said it has granted the underwriters an over-allotment option to purchase an additional 15% of the shares issued in the offering at the same price. The option will remain open for 30 days after closing of the IPO.
Montage Gold is a Canadian precious metals exploration and development with a focus on opportunities in the Cote d’Ivoire.
The company is led by CEO Hugh Stuart, the former vice-president of Red Back Mining Inc., a company acquired by Kinross Gold Corp. [K-TSX; KGC-NYSE] in 2010 in a $7.1 billion deal. Stuart is fronting a management team with significant previous success at discovering and growing gold deposits in Africa.
Its flagship asset is the Morondo Gold Project located in northwest Côte d’Ivoire, approximately 350 km north-west of Yamoussoukro, political capital of the Côte d’Ivoire. The project is also 600 km northwest of Abidjan, the country’s commercial capital.
Morondo hosts Inferred Resources of 52.5 million tonnes grading 0.91 g/t or 1.54 million ounces.
Montage recently launched a 50,000-metre combined reverse circulation and diamond drilling program. The first 20,000 metres will target expansion of inferred resources. Drilling will run concurrently with other aspects of work that will form the basis for a PEA scheduled for completion late in Q1 2021.
Montage’s portfolio also includes the Korokaha Gold Project adjacent to Barrick Gold’s Tongon mine lease. The other key asset in Montage’s portfolio is the Bobosso Gold Project approximately 240 km northeast of Yamoussoukro.