07:50 AM EST, 11/21/2024 (MT Newswires) -- Montage Gold Corp. ( MAUTF ) , which lost 2.75% yesterday, on Thursday announced that it has repurchased a 1.0% net smelter returns royalty on its Kone project, in Cote d'Ivoire, for a total cash consideration of US$10 million.

Martino De Ciccio, CEO of Montage, in a statement said: "Given the strong liquidity sources recently secured, we are pleased to have the strategic and financial flexibility to exercise our right to repurchase a 1.0% royalty on our Kone project, as part of our prudent capital allocation strategy. We believe that this investment offers the ability to significantly enhance the value unlocked by our exploration efforts as many identified exploration targets are covered by the royalty repurchased.

"Moreover, we are delighted with the results of the ongoing 60,000-meter drilling programme as it provides confidence in our ability to deliver on our recently announced Measured and Indicated Resource discovery target of at least 1 million ounces at a grade of more than 1 g/t Au, which would be 50% higher compared to the current Kone deposit grade, to be achieved before the commencement of production. This would represent significant returns on our exploration investment and aligns with our strategic objective of boosting production from the commencement of production while maintaining an annual production of at least 300koz for more than 10 years.

"We are excited with the momentum generated across our business and look forward to continuing to rapidly progress our strategy of creating a premier African gold producer while delivering value for all our stakeholders."