Koné Gold Project

Ranked as one of the highest quality gold projects in Africa given its sizeable low-cost production and long mine life, the Koné project consists of the Koné and Gbongogo gold deposits, located approximately 350 km north-west of Yamoussoukro—the political capital of Côte d’Ivoire, and approximately 600 km north-west of Abidjan—the commercial capital of the country.

Construction launch for the project was announced on December 18, 2024.

The project is 100% owned by Montage Gold.

Further information on the project can be found on Montage Gold’ s website

On October 23, 2024, Montage Gold Corp. ("Montage") announced that it entered into final documentation with strategic partners Wheaton Precious Metals International Ltd. (a wholly owned subsidiary of Wheaton Precious Metals Corp., together with its affiliates, "Wheaton") and Zijin Mining Group Co. Ltd. (through its subsidiary and non-operating division, together with its affiliates, "Zijin") to secure an aggregate US$825 million financing package to fund the development of its flagship Koné project.

The total financing package is comprised of the following instruments

• US$625 million gold stream provided by Wheaton;
• a US$75 million fully redeemable subordinated gold stream provided by Zijin;
• a US$75 million senior secured loan facility provided by Wheaton; and
• a US$50 million senior secured loan facility provided by Zijin.

Fully Redeemable Subordinated Gold Stream from Zijin

Zijin agreed to make an upfront cash consideration of US$75 million available to be drawn by Montage during the 24-month availability period. The proceeds will be allocated to cover project costs, working capital requirements, exploration and financing fees for the development, construction and operation of the Koné project.

Under the terms of the fully redeemable subordinated gold stream, Zijin will receive 3.1% of the payable gold from the Koné project until 54,000 ounces of gold has been delivered, after which Zijin will receive 1.3% of gold production for the remaining life of the mine, unless the stream is redeemed according to the buy back terms outlined in the stream agreement.

Loan Facility from Zijin

Zijin will provide Montage with a US$50 million secured loan facility, with an availability period of 3 years, to be allocated to project costs, working capital requirements and financing fees for the development, construction and operation of the project, plus general and administrative, exploration and corporate costs.

Following the full drawdown of the Zijin gold stream announced on December 27, 2024, Montage expects to draw, over the course of construction of the project, the US$700 million gold stream and loan provided by Wheaton Precious Metals International Ltd., as well as the US$50 million loan by Zijin.

Further information on the financing can be found on Canada Newswire’s website and on globenewswire.com.

Montage is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné gold project, located in Côte d'Ivoire.

Zijin is a large multinational mining group engaged in the global exploration and development of copper, gold, zinc and lithium, as well as engineering and technological research.