MONTAGE Gold said on Thursday it had secured $625m in funding for its Koné Project in Côte d’Ivoire by means of a streaming deal with Wheaton Precious Metals.
“With essential permits in place coupled with its impressive scale, we believe the Koné Project stands out as one of the premier gold assets in Africa,” said Randy Smallwood, President and CEO of Wheaton Precious Metals.
Based on a 2024 feasibility study, Koné is forecast to produce 300,000 ounces of gold over the first eight years at an all-in sustaining cost of $998/oz over its 16 year life of mine. Martino De Ciccio, CEO of Montage said Koné is set to become West-Africa’s next sizable, long-life, low production cost gold mine”.
The $625m, in four equal installment payments, will buy Wheaton Precious Metals 19.5% of payable gold from the mine up to a total of 400,000 oz being delivered. First production is forecast for 2027.
Wheaton Precious Metals has also provided Montage with a secured debt facility of up to $75m to be allocated to project costs, including cost overruns.
Wheaton Precious Metals will pay 20% of the spot price of gold for Koné’s production – about $540/oz assuming the current spot price of gold in round figures of $2,700/oz.
As part of the agreement, Wheaton Precious Metals will make ongoing payments to Montage Gold equal to 20% of the spot price of gold with certain price adjustments built in. If spot gold is $3,200/oz, Wheaton Precious Metals’ production payment would be $675/oz, equal 21% of the spot price.
In return, Montage gets upfront capital to build the mine without suffering equity dilution.
