African Gold Secures $9.2M Montage Partnership, Expands Didievi Gold Potential

Strategic Partnership Bolsters African Gold’s Financial and Operational Position

In a transformative move, African Gold Limited (ASX:A1G) announced a strategic partnership with Canadian-listed Montage Gold Corp (TSX:MAU), which has resulted in Montage acquiring a substantial 19.9% equity stake in African Gold. This alliance was executed through a share swap valued at approximately A$6.47 million, alongside placements raising an additional A$2.7 million from Montage insiders and new investors. The total capital injection of over A$9 million is earmarked to accelerate exploration and corporate activities at African Gold’s flagship Didievi Gold Project in Côte d’Ivoire.

Key to this partnership is the integration of Montage’s expertise into African Gold’s governance and strategy, with Montage’s EVP Exploration, Silvia Bottero, joining the board as a Non-Executive Director, and CEO Martino De Ciccio appointed as a Strategic Advisor. These appointments signal a deepening collaboration aimed at unlocking the full potential of the Didievi asset.

Robust Drilling Results Reinforce Didievi’s Multi-Million Ounce Potential

The March 2025 quarter saw African Gold deliver compelling exploration results that underscore the scale and quality of the Didievi Gold Project. Regional drilling along the Poku Trend, just 3km southeast of the established Blaffo Guetto deposit, revealed a significant gold system with encouraging intercepts such as 110m at 0.5g/t Au and 24m at 0.5g/t Au. These findings suggest a large, continuous mineralised system that could materially enhance the project’s resource base.

At the Blaffo Guetto prospect itself, extensional drilling confirmed high-grade mineralisation continuity along strike and at depth. Highlights included a 155m intercept grading 1.1g/t Au, featuring high-grade zones such as 11m at 11.2g/t Au and 18m at 5.6g/t Au. Additional strong results from the Pranoi prospect, located 11km north, further validate the regional exploration upside with assays like 3m at 7.9g/t Au.

Strategic Focus Tightens on Côte d’Ivoire; Mali Assets Divested

Reflecting a sharpened strategic focus, African Gold has agreed to divest its Mali tenure due to geopolitical instability and operational challenges. The sale agreements with Bambara Resources SARL for its Mali subsidiaries are pending vendor consents but mark a clear pivot to concentrate resources and management attention on the Didievi Project. African Gold will retain a 10% interest in the Walia Project, maintaining some exposure to Mali while prioritising its West African growth corridor.

Corporate Rebrand and Financial Position

In tandem with its operational developments, African Gold unveiled a refreshed corporate identity in February 2025 to better reflect its West African exploration ambitions. The rebrand includes a new logo, updated messaging, and a revamped investor presentation that highlights the company’s significant resource potential and upcoming milestones.

Despite a cash burn of approximately A$821,000 in the quarter, African Gold’s partnership with Montage Gold has substantially strengthened its balance sheet, with Montage shares now valued at over A$8.3 million. This funding underpins ongoing aggressive drilling programs and geophysical surveys designed to delineate the full scale of the Didievi gold system.

Payments to related parties during the quarter amounted to A$142,000, covering director fees and operational services, consistent with prior disclosures. The company’s cash position stood at A$320,000 at quarter-end, with no debt aside from a modest unsecured insurance premium funding loan.

Looking Ahead

With a strengthened financial base, strategic board appointments, and promising exploration results, African Gold is well positioned to advance the Didievi Project towards a multi-million-ounce gold resource. The partnership with Montage Gold not only provides capital but also technical and strategic expertise that could accelerate project development and enhance shareholder value.