In the Ivorian mining sector, a major announcement has recently caused a stir. Montage Gold, a company specializing in mining, has managed to raise an impressive sum of US$825 million in Côte d’Ivoire. This monumental financing is intended to support the construction of the country’s largest gold mine, an ambitious project that promises to boost the local economy and strengthen Côte d’Ivoire’s position on the international mining scene.
According to information provided in an official press release dated October 24, 2024, Montage Gold has entered into financing agreements with two key partners, namely Zijin Mining, a renowned Chinese company in the mining sector, and Wheaton Precious Metals, a Canadian company specializing in precious metals streaming. These agreements include both loans and advance sales of future gold production from the mine under construction.
In more detail, Wheaton Precious Metals has committed to provide $625 million in advance gold purchases, as well as a $75 million loan facility. These financings are intended to support operations related to the Koné and Gbongogo deposits, which will be mined as part of the new gold mine project in Côte d’Ivoire.
The terms of the agreement between Montage Gold and Wheaton Precious Metals provide that the latter will purchase a share of the gold produced from the Koné and Gbongogo deposits. Initially, Wheaton will acquire 19.5% of the payable gold until 400,000 ounces of gold have been delivered. Thereafter, this percentage will be adjusted to 10.8% for the next 130,000 ounces, and then to 5.4% for the remainder of the mine life.
For its part, Zijin Mining also contributed to the financing of the project, providing $75 million under an advance gold sale agreement, as well as $50 million under a loan facility. In exchange, Zijin will receive a portion of the gold produced by the Koné deposit, with decreasing percentages based on the total volume of gold delivered.
This collaboration between Montage Gold, Zijin Mining and Wheaton Precious Metals represents a decisive step in the realization of this major mining project in Côte d’Ivoire. The mobilization of funds of this magnitude demonstrates the confidence of investors in the potential of the Ivorian mining sector and the determination of the stakeholders involved to make this project a resounding success.
In conclusion, the construction of the largest gold mine in Côte d’Ivoire promises to be a major catalyst for the economic development of the country and for the influence of its mining industry on a global scale.This strategic collaboration between Montage Gold, Zijin Mining and Wheaton Precious Metals opens up promising new perspectives for the future of mining in Côte d’Ivoire, placing the country on the path to sustainable and profitable growth for all its citizens.