Montage Gold Corp. Announces Pricing of Initial Public Offering and Files Final Prospectus
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Montage Gold Corp. Announces Pricing of Initial Public Offering and Files Final Prospectus
Vancouver, British Columbia – October 20, 2020 – Montage Gold Corp. (“Montage” or the “Company”) today announced that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces of Canada, except Québec, in connection with its initial public offering (the “Offering”) of 27,272,728 common shares at a price of $1.10 per share (the “Offering Price”) for gross proceeds of $30,000,001. Due to strong demand, the Offering was upsized by an additional $5,000,000 and the Company is very pleased to welcome its new shareholders as it looks forward to completing the initial public offering. A copy of the final prospectus in respect of the Offering is available on SEDAR at www.sedar.com.
Raymond James Ltd. and Stifel GMP are acting as co‐lead underwriters for the Offering on behalf of a syndicate that includes BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Beacon Securities Limited, Cormark Securities Inc. and Sprott Capital Partners LP.
Montage has granted the underwriters an over‐allotment option (the “Over‐Allotment Option”), exercisable in whole or in part, at the sole discretion of the underwriters, at any time and from time to time, for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the common shares issued pursuant to the Offering from Montage at the Offering Price.
The closing of the Offering is expected to occur on or about October 23, 2020 (the “Closing Date”) and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals. Montage has received conditional listing approval of the TSX Venture Exchange (the “TSXV”) for the listing of its common shares, including those being issued and sold pursuant to the Offering. Listing remains subject to Montage fulfilling customary TSXV requirements. The common shares are expected to commence trading on the TSXV under the symbol “MAU” on the Closing Date.
The net proceeds of the Offering will be used to advance the drilling program at the Company’s Morondo Gold Project, to advance a Preliminary Economic Assessment and a Feasibility Study at the Morondo Gold Project, to fund operating costs and for general corporate and administrative purposes, as set out in the final prospectus.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the common shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Montage Gold Corp.
Montage Gold Corp. is a Canadian‐based precious metals exploration and development company focused on opportunities in Côte d’Ivoire. The Company’s flagship property is the Morondo Gold Project (“MGP”), located in northwest Côte d’Ivoire, which hosts an inferred mineral resource of 52.5Mt grading 0.91 g/t for 1,536koz of gold, based on a 0.5 g/t cutoff grade. Montage has a management team and board with significant experience in discovering and developing gold deposits in Africa. The Inferred Mineral Resource was estimated using an optimal pit shell generated for constraining Inferred Mineral Resources with dimensions of approximately 1,100 m by 620 m, with a maximum depth of around 260 m, and used a gold price of US$1,500/oz. See the Company’s amended and restated technical report entitled “Amended and Restated NI 43‐101 Technical Report for the Morondo Gold Project, Côte d'Ivoire” with an effective date of September 17, 2020, available on SEDAR at www.sedar.com, which was prepared for the Company by Jonathon Robert Abbott, BASc Appl. Geol, MAIG, of MPR Geological Consultants Pty Ltd. and Remi Bosc, Eurgeol, of Arethuse Geology SARL, who are “qualified persons” and “independent” of Montage within the meanings of NI 43‐101.
For Further Information, Contact:
Adam Spencer Executive Vice President, Corporate Development [email protected]
Forward Looking Statements
This press release contains certain forward‐looking information and forward‐looking statements within the meaning of Canadian securities legislation (collectively, “Forward‐looking Statements”). All statements, other than statements of historical fact, constitute Forward‐looking Statements. Words such as “will”, “intends”, “proposed” and “expects” or similar expressions are intended to identify Forward‐ looking Statements. Forward looking Statements in this press release include statements related to the completion of the Offering, the listing of the Company’s common shares on the TSXV, the proceeds to be raised pursuant to the Offering, the exercise of the Over‐Allotment Option, the use of proceeds from the Offering, the Company’s resource properties, and the Company’s plans, focus and objectives. Forward‐ looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices, uncertainties inherent in the exploration of mineral properties, the Company’s ability to complete the Offering, the impact and progression of the COVID‐19 pandemic and other risk factors set forth in the Company’s final prospectus under the heading “Risk Factors”. The Company undertakes no obligation to update or revise any Forward‐looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward‐looking Statement. Any Forward‐looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.