10:55 AM EDT, 04/07/2025 (MT Newswires) -- Montage Gold ( MAUTF ) said Monday that it closed the first tranche of its previously announced share swap with Australia-listed African Gold.

As part of the first tranche, African Gold will issue 46.02 million shares to Montage in return for 1.01 Montage common shares. The second tranche is expected to close in the second quarter.

The complete deal will have African Gold issue 92.38 million shares at A$0.07 apiece while Montage will issue 2.03 million shares at $2.87 each. In connection with the share exchange transaction, Montage and African Gold entered a share subscription agreement under which Montage is entitled to certain investor rights provided that Montage maintains a 9% ownership in African Gold until the completion of the second tranche and 10% thereafter.

Montage and African Gold also signed a project rights agreement through which Montage is entitled to certain project-related rights.

Montage traded 3.3% lower at last look to $3.12 on the TSXV.

Price: 3.07, Change: +0.05, Percent Change: +1.66