Perseus Mining, an Australian mining company with operations at three gold mines in Africa, has successfully offloaded its stake in Montage Gold, a gold exploration and development company, for $45 million. The sale, completed via a bought deal, generated net proceeds of C$61.3 million ($45m) for Perseus. This transaction comes as Perseus looks to strengthen its balance sheet following its recent $57.9m acquisition of a stake in Predictive Discovery, which owns the Bankan gold project in Guinea.

Perseus acquired the Montage shares as part of its acquisition of Orca Gold in May 2022. Orca's key asset was a 70% interest in the Block 14 gold project, since renamed the Meyas Sands gold project, in Sudan. Perseus regarded its shareholding in Montage as non-core. The company offloaded 33 million common shares in Montage Gold to BMO Nesbitt Burns (BMO) for C$1.86 each.

The company’s chairman and CEO, Jeff Quartermaine, expressed his satisfaction with the successful completion of the sale, highlighting that the proceeds will largely offset the cost of the recent acquisition in Predictive. “We are very pleased to have successfully completed the sale of the Montage shareholding at a price that will largely offset the cost of our recent acquisition of a strategic stake in Predictive’s Bankan Gold Project in Guinea, which we believe is a potentially attractive gold development project,” Quartermaine stated.

The Bankan Gold Project

The Bankan Gold Project in Guinea is a potentially attractive gold development project that Perseus believes will contribute to its growth strategy. Perseus’s investment in Predictive Discovery is a strategic move to gain a foothold in this promising gold project. The project is located in a region known for its gold potential, and Perseus is confident that it will be a valuable addition to its portfolio.

Predictive Discovery's Plans for the Bankan Gold Project

Predictive Discovery is actively exploring and developing the Bankan Gold Project, with plans to advance it to the feasibility stage. The company is focusing on defining the resource base and conducting metallurgical test work to determine the best way to process the ore. The project holds significant potential for gold production, and Perseus is committed to supporting Predictive Discovery in its efforts to unlock this value.

Perseus’s Future Growth Strategy

The sale of the Montage shareholding aligns with Perseus’s strategy to focus on its core operations and pursue opportunities that offer the most potential for value creation. The company is committed to growing its gold production and reserves through strategic acquisitions and exploration.

The recent acquisition of a strategic stake in Predictive Discovery is a testament to Perseus’s commitment to growth. The Bankan Gold Project is a high-quality asset that complements Perseus’s existing portfolio and provides a platform for future growth. Perseus is confident that the project will deliver significant value to shareholders.

Perseus's Acquisition of OreCorp

In addition to its focus on gold exploration and development, Perseus is also actively pursuing opportunities to expand its operations through acquisitions. In April 2024, Perseus declared that its off-market bid for OreCorp is now unconditional and will stand as its best and final offer, unless a competing bid is received. The updated proposal exceeded the initial cash offer of A$0.55, valuing the transaction at A$258m. OreCorp accepted Perseus’s proposal as superior and noted that unless Silvercorp makes any revisions, it will advise its shareholders to accept the offer.

Perseus's Growing Footprint in Africa

The sale of the Montage shareholding and the acquisition of a stake in Predictive Discovery are part of Perseus’s broader strategy to expand its footprint in Africa. The company is committed to responsible mining practices and to working with local communities to ensure that its operations have a positive impact.

Perseus's focus on Africa, a continent rich in mineral resources, is a strategic move to capitalize on the growing demand for gold and other precious metals. The company is well-positioned to benefit from the continent’s economic growth and its abundant mineral wealth.

A Focus on Sustainable Development

Perseus is committed to sustainable development, which is reflected in its commitment to environmental protection, social responsibility, and good governance. The company is actively engaged in initiatives to promote local communities and to mitigate the environmental impact of its operations.

A Look Ahead

Perseus is well-positioned for continued growth and success in the years ahead. The company’s strong financial position, its focus on high-quality assets, and its commitment to sustainable development will enable it to navigate the challenges and opportunities in the global mining industry. The company is committed to creating long-term value for its shareholders and to making a positive contribution to the communities in which it operates.

The Future of Perseus Mining: A Brighter Outlook

Perseus is committed to becoming a leading player in the global gold mining industry. The company's recent acquisitions and strategic investments position it for future growth and success. Perseus's commitment to responsible mining practices and its focus on sustainable development will ensure that its operations have a positive impact on the environment and the communities in which it operates.