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West Africa-focused gold explorer Montage Gold (TSXV: MAU) has closed a financing of approximately C$20 million ($15.5m) to fund its acquisition and subsequent development of the Mankono-Sissédougou joint venture project in Côte d’Ivoire.

The financing involves the private placement of roughly 28.6 million subscription receipts, each priced at C$0.70 and convertible into one common share of the company. The offering is led by Stifel GMP on behalf of a syndicate of underwriters. Proceeds will be held in escrow until Dec. 7, 2022, and will accrue interest to benefit the receipt holders.

The offering was announced by Montage earlier in June as part its agreement to acquire the Mankono-Sissédougou JV project held by Barrick Gold and Endeavour Mining for total consideration of C$30 million ($23.3m).

The Mankono JV consists of three properties contiguous to the company’s flagship Koné gold project, which currently hosts a probable mineral reserve of 161.1 million tonnes grading 0.66 g/t for 3.42 million oz. of gold.

A definitive feasibility study on Koné project was released earlier this year. This outlined a 15-year operation capable of producing 3.06 million oz. of gold with average annual production of 207,000 oz. and peak production of 320,000 oz.

The impending project acquisition would nearly double the company’s existing landholding from 1,442 km² to 2,259 km², all within the haulage distance of proposed Koné mill location. To date, approximately $20 million has been spent on exploration by the JV partners since its formation in 2017.