Montage Gold to acquire remaining African Gold shares, boosting regional control

Montage Gold announced a binding agreement to buy the remaining outstanding shares of African Gold, moving the junior miner toward full ownership of its West African assets. The transaction, agreed by both boards, is designed to simplify the companies' corporate structure, accelerate project development and capture operational cost synergies across the portfolio.

Under the terms disclosed, Montage Gold will complete the purchase through a mix of cash and equity consideration. The deal is subject to customary closing conditions, including shareholder approval, regulatory consent in relevant jurisdictions and satisfaction of any third-party consents on existing contracts. Company statements said the combined entity will be better positioned to streamline permitting, optimize capital allocation and target near-term production improvements.

Management highlighted that full control of key West African deposits allows Montage to coordinate exploration and development timetables, reduce overlapping corporate costs and pursue a consolidated development plan. The companies expect potential benefits from centralized procurement, shared engineering resources and a unified management team that can prioritize the highest-return opportunities.

Analysts note that while value creation depends on successful integration and the pace of permitting and construction, the transaction removes minority-shareholder complexity and could make future financing easier by presenting a clearer asset base to investors and lenders. Montage will outline a post-close roadmap for operations, staffing and capital expenditure at a subsequent investor presentation.

Shareholder votes are anticipated within months, with closing contingent on regulatory approvals. Montage indicated it has engaged financial and legal advisers to support the process and will provide updates on timing, expected costs and any anticipated changes to board composition. Market reaction will likely hinge on the financing mix and whether the acquisition materially alters Montage’s near-term cash requirements.

The deal underscores ongoing consolidation among junior gold producers in Africa as companies aim to scale and de-risk projects amid changing market and financing conditions. Both companies said they will continue to update the market as milestones are achieved.