Montage Gold has successfully secured $825 million in Côte d’Ivoire to finance the construction of the country’s largest gold mine, which is expected to produce 301,000 ounces annually during its first eight years. This project is poised to significantly boost Ivory Coast’s long-term gold output.
In a press release dated October 24, 2024, Montage confirmed that the funding was obtained through a combination of loans and advance sales of future gold production.
The financing involved key partnerships, including China’s Zijin Mining, a shareholder, and Wheaton Precious Metals, a Canadian company that specializes in precious metals streaming.
Wheaton is contributing $625 million via advance gold purchases, plus an additional $75 million in loan facilities. The funding is focused on the Koné and Gbongogo deposits at the mine site.
According to the agreement, Wheaton will initially purchase 19.5% of payable gold from these deposits until 400,000 ounces have been delivered. After this, the purchase rate will reduce to 10.8% for an additional 130,000 ounces, and then further decrease to 5.4% for the remainder of the mine’s life.
Zijin Mining is providing $75 million through an 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 which their share will drop to 1.3% for the rest of the mine’s operational life.
