08:39 AM EST, 12/02/2024 (MT Newswires) -- Montage Gold ( MAUTF ) on Monday said it bought a 20% stake in Sanu Gold ( SNGCF ) for $5.5 million to gain a foothold in Sanu's gold properties in Guinea.

At the same time, the Lundin family and funds they control will buy a 10% stake in Sanu for $2.7 million. AngloGold Ashanti ( AU ) acquired a 14% stake in Sanu in September.

Sanu has three gold properties in a rich gold-mining district in Guinea, near a mine operated by AngloGold Ashanti ( AU ) as well other mines, projects and exploration ventures.

"We are very pleased to form a strategic partnership with Sanu Gold ( SNGCF ), owner of a highly prospective exploration portfolio in Guinea's Siguiri Basin, which will allow Montage to leverage Sanu's established presence in the country to accelerate its greenfield exploration strategy," Montage Chief Executive Martino De Ciccio said in a statement.

With the investment, De Ciccio will become Sanu's non-executive chairman and Silvia Bottero, Montage's executive vice-president of exploration, will serve on a joint technical committee to oversee work at Sanu's Daina and Bantabaye properties, while Sanu and AngloGold have a similar committee to oversee work at the Diguifara property.

Sanu will use the funds from the Montage and Lundin investments for exploration and geophysical studies on its Guinea properties.

Montage shares closed up $0.02 to $2.23 Friday on the TSX Venture Exchange, while Sanu was down $0.005 to $0.05 on the Canadian Securities Exchange.