Montage will take a 100% interest in the JV—which consists of three properties contiguous to its flagship Kone project—for a total consideration of C$30 million (US$23.88 million).

"This is an important step for Montage, with the addition of Mankono, our consolidated land position at Kone gold project will increase to over 2,250km­² in one of the most prolific gold belts in West Africa," Montage CEO Hugh Stuart said.

"Previous exploration at Mankono has identified a number of target areas and Montage intends to explore these targets aggressively with the objective of adding high grade satellite feed into the KGP," he added.

Montage said the highlights of the 893km² property package include all areas being within haulage distance of the proposed Kone mill, US$20 million worth of historic exploration, over 65km of soil anomalies defined, and high-grade satellite potential.

Upon closing, Barrick and Endeavour will take shares in Montage of 9.93% and 4.26%, respectively.

The transaction is subject to the award of the Gbongogo exploration permit. Montage expects the deal to close as soon as that is awarded.

Montage is raising C$20 million through a bought deal private placement basis of about 28.6 million subscription receipts priced at C$0.70 per receipt—which is to be used to pay the cash portion of the consideration.

Barrick and Endeavour will also be granted 70% and 30%, respectively, of a 2% NSR royalty. Montage will have a 1% buyback option for a period of two years for a price of US$10 million.

Montage's flagship Kone gold project hosts a probable mineral reserve of 161. Million tonnes grading 0.66g/t for 3.42 million ounces of gold. A February 2022 definitive feasibility study on the project outlined a 15-year gold project producing 3.06 million oz of gold with average annual production of 207,000 oz, and peak production of 320,000 oz.

Montage's share price was C$0.68 on June 8, giving the company a market capitalization of C$71.43 million.