Montage Gold Implements Revenue Protection Programme
Montage Gold Implements Revenue Protection Programme
VANCOUVER, British Columbia, Nov. 05, 2024 -- Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU,
OTCQX: MAUTF) is pleased to announce the implementation of a revenue protection programme with the goal of securing
significant margins to enhance its financial flexibility and achieve its strategic objectives at the onset of production from its
Koné project.
Martino De Ciccio, CEO of Montage, commented: “We are pleased to complement our recently secured financing package
with the successful execution of our revenue protection programme which takes advantage of unprecedented put option
pricing. By entering into put options we have secured a minimum gold price of US$2,500/oz on 400,000 ounces over the 2027-
2028 period, while retaining full upside to the gold price. As prudent allocators of capital, this programme positions us well to
generate significant margins and deliver on our strategic objectives for the benefit of all stakeholders.”
The voluntary revenue protection programme consists of the purchase of 400,000 ounces of put options at a strike price of
US$2,500/oz, for a total cash consideration of US$52.7 million, equally spread every month across the January 2027 to
September 2028 period, which can be cash or physically settled.
The programme has been designed to protect Montage’s margins during its peak reimbursement phase as it has committed to
deliver 19.5% of its payable gold to Wheaton Precious Metal, at a transfer price of circa 20% of the spot price, until 400,000
ounces of gold have been delivered (the “First Dropdown Threshold”), thereafter dropping to 10.8% until an additional 130,000
ounces of gold have been delivered (the “Second Dropdown Threshold”).
Securing strong margins during the First Dropdown Threshold is expected to provide the Company optionality to accelerate its
deleveraging by delivering more than its minimum required commitments under the Wheaton Stream and by exercising its
buyback options under the Zijin Fully Redeemable Stream 1. Furthermore, as the programme consists solely of put options,
Montage retains the financial flexibility to later offset its initial cash outlay by converting the programme into a zero-cost collar
or through the early monetization of the put options, based on its assessment of market conditions and its capital allocation
priorities.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
For Investor Relations Inquiries:
Jake Cain
Strategy & Investor Relations
Manager
+44 7788 687 567
For Media Inquiries:
John Vincic
Oakstrom Advisors
+1-647-402-6375
For Regulatory Inquiries:
Kathy Love
Corporate Secretary
+1-604-512-2959
ABOUT MONTAGE GOLD CORP.
Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold
producer, with its flagship Koné project, located in Côte d’Ivoire, at the forefront. Based on the Feasibility Study published in
2024, the Koné project has an estimated 16-year mine life and sizeable annual production of +300koz of gold over the first 8
years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in developing
projects in Africa to progress the Koné project towards a construction launch.
TECHNICAL DISCLOSURE
The Koné and Gbongogo Main Mineral Resource Estimates were carried out by Mr. Jonathon Abbott of Matrix Resource
Consultants of Perth, Western Australia, who is considered to be independent of Montage Gold. Mr. Abbott is a member in
good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity,
style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under NI 43–
101.
The Mineral Reserve Estimate was carried out by Ms. Joeline McGrath of Carci Mining Consultants Ltd., who is considered to
be independent of Montage Gold. Ms. McGrath is a member in good standing of the Australian Institute of Mining and
Metallurgy and has sufficient experience which is relevant to the work which she is undertaking to qualify as a Qualified
Person under NI 43–101.
For further details of the data verification undertaken, exploration undertaken and associated QA/QC programs, and the
interpretation thereof, and the assumptions, parameters and methods used to develop the Mineral Reserve Estimate for the
Koné Gold Project, please see the UFS, entitled "Koné Gold Project, Côte d'Ivoire Updated Feasibility Study National
Instrument 43-101 Technical Report" and filed on SEDAR+ at www.sedarplus.ca. Readers are encouraged to read the UFS in
its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release.
The UFS is intended to be read as a whole, and sections should not be read or relied upon out of context.
QUALIFIED PERSONS STATEMENT
The scientific and technical contents of this press release have been verified and approved by Silvia Bottero, BSc, MSc, a
Qualified Person pursuant to NI 43-101. Mrs. Bottero, EVP Exploration of Montage, is a registered Professional Natural
Scientist with the South African Council for Natural Scientific Professions (SACNASP), a member of the Geological Society of
South Africa and a Member of AusIMM.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian
securities legislation (collectively, “Forward-looking Statements”). All statements, other than statements of historical fact,
constitute Forward-looking Statements. Words such as “will”, “intends”, “proposed” and “expects” or similar expressions are
intended to identify Forward-looking Statements. Forward-looking Statements in this press release include statements related
to redemption of the Zijin Stream; ability to deleverage more quickly; securing significant margins; ability to later offset its
initial cash outlay by converting the programme into a zero-cost collar or early monetization of the put options; the Company’s
compliance with certain ESG matters; the Company’s mineral reserve and resource estimates; the timing and amount of future
production and the anticipated production costs from the Koné Gold Project; anticipated mining and processing methods of
the Koné Gold Project; anticipated mine life of the Koné Gold Project; targeted improvements in the production profile;
expected timing of commencement and completion of our stated drill programs in 2024; results of the drill programs including
targeted additions to the estimated mineral resources at the Koné Gold Project, and the timing thereof; the establishment of
satellite deposits and the development of these deposits; expected recoveries and grades of the Koné Gold Project; timing in
respect of the commencement of construction, and the length of construction, of the mining operations at the Koné Gold
Project; timing and amount of necessary financing related to the mining operations at the Koné Gold Project; and timing for
permits and concessions, including that the Company will receive all approvals necessary to build the project and exploration
plans for 2024.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There
can be no assurance that such statements will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from
the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and
definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, and in delineating new mineral reserve and
resource estimates, including but not limited to, assumptions underlying the production estimates not being realized, incorrect
cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates being lower than
expected, unexpected adverse changes to geotechnical or hydrogeological considerations, or expectations in that regard not
being met, unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power
rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project
parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks
inherent in the Côte d’Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange
rate fluctuations, delays in or failure to receive access agreements or amended permits, and other risk factors set forth in the
Company’s 2023 Annual Information Form available at www.sedarplus.ca, under the heading “Risk Factors”. The Company
undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future
events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for
Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking
Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards (“IFRS”), including AISC or “all-in sustaining costs” per payable ounce of
gold sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non-GAAP measures
do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures
employed by other companies. The Company discloses “all-in sustaining costs” and other unit costs because it understands
that certain investors use this information to determine the Company’s ability to generate earnings and cash flows for use in
investing and other activities. The Company believes that conventional measures of performance prepared in accordance with
IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not
necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining
costs and unit costs are considered to be key indicators of a project’s ability to generate operating earnings and cash flows.
Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in
accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under
IFRS. Readers should also refer to our management’s discussion and analysis, available under our corporate profile at
www.sedarplus.ca for a more detailed discussion of how we calculate such measures.
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1 For more information on the Wheaton and Zijin streams, please consult the comprehensive $825 million financing package
announced on October 23, 2024.