08:03 AM EST, 12/31/2024 (MT Newswires) -- Montage Gold ( MAUTF ) on Tuesday closed its previously announced investment to take a 19.9% stake in Sanu Gold ( SNGCF ) .

The deal includes the issuance to Montage of 76.3 million common shares of Sanu at $0.072 apiece, and the issuance to Sanu of 2.3 million common shares of Montage at $2.35 apiece. The shares issued in the transaction are subject to a four-month hold period that expires on May 1.

Montage and Sanu also signed an investor rights agreement in which Montage is entitled to certain rights provided it maintains a 10% stake in Sanu.

Sanu expects to use net proceeds of the offering to advance exploration, including geophysics and drilling on Sanu's Daina, Diguifara and Bantabaye Gold Exploration Permits in Guinea, West Africa, and for general and administrative purposes.

Shares of the company closed down $0.03 or 1%, to $2.09 on Monday on the TSX Venture Exchange.