11:48 AM EDT, 07/16/2024 (MT Newswires) -- Montage Gold ( MAUTF ) said Tuesday that it is raising up to $170 million in a private placement 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 97.14-million shares priced at $1.75 apiece. Zijin agreed to purchase nearly 33-million shares for $57.3 million, giving it 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%.

"With a strengthened balance sheet, we will be well positioned to rapidly continue unlocking value for our stakeholders by progressing the Kone project towards an anticipated construction launch by Q1-2025, while continuing to progress our exploration strategy of delineating higher-grade targets that can be slotted into the mine plan from the commencement of the operation," chief executive Martino De Ciccio said in a release.

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

Montage shares were last seen up $0.08 to $1.85 on the TSX Venture Exchange.

Price: 1.85, Change: +0.08, Percent Change: +4.52