African Gold Limited has realised a 134% gain from selling Montage Gold shares, boosting its cash reserves to about A$16 million to accelerate exploration at its promising Didievi Gold Project in Côte d’Ivoire.
- Sale of 2 million Montage Gold shares nets ~A$15 million
- Realised 134% gain on initial investment price
- Cash balance now approximately A$16 million
- Accelerated drilling at Didievi’s Blaffo Guetto and regional targets
- Didievi project shows potential for multi-million-ounce gold inventory
Strategic Monetisation Bolsters Cash Position
African Gold Limited (ASX, A1G) has successfully completed the sale of over two million shares in Montage Gold, realising gross proceeds of approximately A$15 million. This move reflects a shrewd capital recycling strategy, converting a strategic equity stake acquired at C$2.87 per share into a substantial 134% gain as the shares traded at an average of C$6.72. The cash injection elevates African Gold’s balance sheet to around A$16 million, providing robust funding for its exploration ambitions.
Accelerating Exploration at Didievi
With this strengthened financial position, African Gold is intensifying its exploration efforts at the Didievi Gold Project in Côte d’Ivoire. The project’s flagship resource, Blaffo Guetto, currently hosts nearly one million ounces of gold at a grade of 2.5 grams per tonne. Two diamond drilling rigs are actively targeting resource expansion beyond the existing 989,000-ounce inferred resource, guided by a comprehensive structural review to optimise results.
Complementing this, two reverse circulation rigs are set to mobilise shortly to test near-surface targets and regional anomalies that have seen limited prior exploration. Early drilling results have been encouraging, with significant intercepts such as 16 meters at 13.2 grams per tonne and multiple other high-grade zones confirming the continuity and potential scale of mineralisation.
District-Scale Potential and Development Flexibility
Beyond Blaffo Guetto, the Didievi tenement hosts multiple promising prospects including Pranoi and the Poku Trend, which together suggest a district-scale opportunity capable of supporting a multi-million-ounce gold inventory. The project benefits from proximity to existing processing infrastructure with capacity for around 8 million tonnes, offering a pathway to near-term production and the flexibility to evolve into a standalone operation in the future.
African Gold’s methodical approach to exploration, backed by a strong cash position, positions it well to unlock the full value of this underexplored gold corridor. The company’s ongoing drilling campaign through the end of 2025 is expected to yield further insights into the resource potential and help define the project’s development trajectory.
Bottom Line?
African Gold’s savvy sale of Montage shares has set the stage for a pivotal phase of exploration that could reshape its footprint in Côte d’Ivoire’s gold sector.
Questions in the middle?
- How will upcoming drilling results influence the resource upgrade timeline?
- What are the prospects for advancing Didievi towards production within the next few years?
- How might fluctuations in gold prices and regional political stability impact project economics?