Montage Gold secures funding for Koné project in Côte d’Ivoire
Montage Gold has secured $825 million financing package to fund the construction of its flagship Koné Gold Project in Côte d’Ivoire.
The package is backed by Wheaton Precious Metals and strategic shareholder Zijin Mining, significantly boosting Montage’s liquidity to approximately $968 million, including $143 million in cash reserves.
Koné project
Wheaton Precious Metals has committed to purchasing 19.5% of the gold production from the Koné mine, up to 400,000 ounces, in exchange for $625 million. This payment will be made in four equal instalments during the mine’s construction phase. After the initial 400,000 ounces, Wheaton’s purchase share will drop to 10.8% for an additional 130,000 ounces and then further to 5.4% for the remainder of the mine’s life. Wheaton is also providing a $75 million secured debt facility to cover additional project costs.
Zijin Mining is contributing $125 million to the project. This includes a $50 million loan facility with a nine-year tenure and a $75 million subordinated gold stream, further strengthening the financial position of Montage.
The financing comes at a critical time, allowing Montage to move forward with the construction of the Koné mine, which is projected to become a major player in West Africa’s gold industry. Production is expected to begin in early 2027, with an annual output of 300,000 ounces of gold for the first eight years. The mine’s total life is estimated at 16 years.
This financing marks the third successful capital raising for Montage in 2024, following a $180 million private placement in August and a $35 million placement in March. CEO Martino De Ciccio emphasized the significance of the partnerships with Wheaton and Zijin, which will help position the Koné project as a leading, low-cost gold mine in Africa.
