08:00 AM EDT, 07/16/2024 (MT Newswires) -- Montage Gold ( MAUTF ) said Tuesday that it is raising up to $170 million in equity financing that includes an investment from Zijin Mining Group.

Montage plans to use the proceeds to advance the Kone gold project in Cote d'Ivoire, as well as for working capital and general corporate purposes.

The private placement comprises about 97 million shares priced at $1.75 apiece. Zijin agreed to purchase nearly 33 million shares for $57.3 million, resulting in a 9.9% ownership interest in Montage.

The Lundin Family Trusts also agreed to purchase about 25 million shares for $43 million to increase its stake in Montage to 19.9% from 17.7%.

The offering is expected to close during the week of Aug. 12.

Montage's share price rose 1.14% yesterday to $1.77.