The deal comes as Canada seeks to tighten its Funding Canada Act, below which offers involving a overseas firm are reviewed to safeguard nationwide safety.
Montage mentioned it believes the funding doesn’t require approval from the Canadian authorities as a result of Zijin will personal lower than 10% of Montage upon closing of the transaction, gold just isn’t listed as a essential mineral by the Canadian authorities, and Montage’s property are outdoors of Canada.
In 2022, Canada ordered three Chinese language firms to divest their investments in Canadian essential minerals, citing nationwide safety.
Earlier this yr, copper miner Solaris Assets reported that Chinese language state-owned Zijin Mining was planning to amass a 15% stake within the Canadian miner, however scrapped the plans because it feared the deal was unlikely to fulfill the overseas funding requirements.
Canada has informed the mining trade that any main offers concentrating on the nation’s producers of essential minerals would solely be accepted below “essentially the most distinctive circumstances.”
Gold doesn’t function within the nation’s essential minerals record.
As a part of the deal, the Lundin Household Belief additionally agreed to extend its stake in Montage from 17.7% to 19.9%.
Proceeds from the providing shall be used for improvement expenditures and exploration at Montage’s Kone undertaking in Ivory Coast.
Montage mentioned the funding will assist it elevate further capital. It plans to have its further financing in place earlier than the 2025 first quarter when it’ll begin development of the Kone mine.
($1 = 1.3676 Canadian {dollars})
(By Seher Dareen and Divya Rajagopal; Modifying by Vijay Kishore and Leslie Adler)