Canada’s Montage Gold has successfully secured an $825 million financing package to support the construction of its flagship Koné project in Côte d’Ivoire.
The funding involves partnerships with Wheaton Precious Metals and strategic shareholder Zijin Mining, boosting Montage’s total liquidity to approximately $968 million, including $143 million in cash reserves. Wheaton has committed to purchasing 19.5% of the payable gold production from the Koné mine until a total of 400,000 ounces is delivered, providing an upfront cash injection of $625 million. This amount will be disbursed in four equal installments during the construction phase. After the initial delivery, Wheaton’s gold purchase will reduce to 10.8% until an additional 130,000 ounces, and then to 5.4% for the remainder of the mine’s life.
In addition, Wheaton is offering Montage a $75 million secured debt facility to cover project costs.
“With essential permits in place and its impressive scale, we believe the Koné project is among the premier gold assets in Africa,” said Wheaton Precious Metals CEO Randy Smallwood in a separate statement. He noted that strong support from shareholders, including the Lundin Group and Zijin Mining, positions the Koné project to significantly enhance Wheaton’s near-term annual gold production and strengthen its growth trajectory.
Zijin Mining is contributing $125 million to Montage through a $50 million loan facility with a nine-year term, along with a $75 million fully redeemable subordinated gold stream.
“We are thrilled to finalize our financing through strategic partnerships with Wheaton and Zijin, who share our vision of establishing a leading African gold producer,” said Montage CEO Martino De Ciccio. “With this financing milestone achieved, we are excited to soon begin construction of the Koné project, which is poised to become West Africa’s next significant, long-life, low-cost gold mine and unlock value for all stakeholders.”
This financing marks Montage’s third successful funding initiative in 2024, following an upsized private placement of $180 million in August and a $35 million placement in March.
The Koné mine is expected to produce 300,000 ounces of gold annually during its first eight years, with production anticipated to commence in early 2027. The estimated lifespan of the Koné mine is projected at 16 years.
