African Gold Limited (ASX: A1G), a company focused on gold exploration in West Africa, has announced the completion of a significant share sale in Montage Gold. The company sold 2,026,388 ordinary shares in Montage Gold at an average price of C$6.72 per share, resulting in gross proceeds of approximately C$13.62 million, equivalent to around A$14.96 million. This transaction significantly strengthens African Gold’s financial position.
The Montage shares were initially issued to African Gold at C$2.87 per share as part of Montage’s 17.5% strategic investment, announced earlier this year. The recent sale represents a substantial 134% gain on that initial price. African Gold attributes this positive outcome to Montage’s successful project delivery in Côte d’Ivoire, favourable gold market conditions, and strong investor confidence in the region’s gold sector.
Following the share sale, African Gold now boasts a cash balance of approximately A$16 million. The company intends to use these funds to accelerate exploration activities at its Didievi Gold Project. This includes aggressive resource growth initiatives at the Blaffo Guetto deposit and initial drilling programs aimed at identifying potential satellite deposits. Two diamond rigs are currently operating at Blaffo Guetto, with two RC rigs scheduled to mobilise in November to target near-surface resources and regional anomalies.
The ongoing drilling program at Didievi has already yielded promising results, including high-grade gold intercepts. African Gold is confident that the project has the potential to host a multi-million-ounce gold inventory, solidifying its position as a key player in Côte d’Ivoire’s gold sector. The company continues its methodical exploration efforts across the project area, aiming to expand resources and unlock the full value of the underexplored gold corridor.
