Perseus Mining Ltd, a mining company based in Cote d’Ivoire with operations in Ghana and now Guinea has sold its entire stake in Montage Gold Corp, a firm owning Côte d’Ivoire’s projected biggest mine, in a transaction valued at approximately $45 million.
In a market announcement, Perseus chairman and CEO Jeff Quartermaine disclosed that the company had divested 33 million common shares at C$1.86($1.36) per share. The sale was executed on August 20 following an agreement with BMO Nesbitt Burns Inc., the buyer.
This strategic sale marks a significant shift for Perseus, which originally acquired the Montage shares in May 2022 through its purchase of Orca Gold Inc. Orca’s principal asset was a 70% interest in Sudan’s Block 14 Gold Project, now renamed the Meyas Sands Gold Project.
Prior to this sale, Perseus held approximately 9.6% of Montage’s outstanding shares, representing a significant portion of the company’s equity.
However, Perseus regarded this investment as non-core to its operations. This sale therefore allows the company to streamline its portfolio and focus on assets that align with its strategic goals.
Moreover, by liquidating its stake in Montage, the mining company aims to strengthen its balance sheet, especially following its recent strategic acquisition of a 13.82% stake in Predictive Discovery Ltd, which holds the Bankan Gold Project in Guinea, from London-listed mining services company Capital. This acquisition cost Perseus approximately A$86 million ($57.9 million).
Jeff Quartermaine, Perseus’s Chairman and CEO, expressed satisfaction with the transaction, stating, “We are very pleased to have successfully completed the sale of the Montage shareholding at a price that will largely offset the cost of our recent acquisition of a strategic stake in Predictive’s Bankan Gold Project in Guinea, which we believe is a potentially attractive gold development project.”
Expanding African Footprint
Perseus Mining’s recent acquisitions highlight its commitment to diversifying and strengthening its operations across Africa.
While the sale of Montage shares reduces its exposure in Côte d’Ivoire, where Montage is developing the Koné Gold Project, Perseus continues to expand its footprint with significant investments in Guinea and Tanzania.
The company operates the Yaouré and Sissingué gold mines in Côte d’Ivoire, the Edikan gold mine in Ghana, and has recently acquired OreCorp’s Nyanzaga Gold Project in Tanzania.
These strategic investments, combined with the proceeds from the Montage sale, position Perseus for sustained growth in the African mining sector. They also solidify the company’s financial standing.
“As a deliberate element of our capital management strategy, Perseus continues to assess and, where considered commercially appropriate, deploy our significant reserves of cash and bullion that totalled $ 587 million at June 30, to pursue opportunities that will deliver material growth for our shareholders in coming years,” CEO Quatermaine said following the Predictive acquisition, emphasizing Perseus focus on high yield projects.
