African Gold (ASX: A1G) surges 65% as Montage Gold launches A$264m all-scrip takeover

Montage Gold’s A$264m takeover ignites rally in African Gold

African Gold (ASX: A1G) has entered into a Scheme Implementation Deed with Montage Gold Corp, under which Montage will acquire African Gold in an all-scrip transaction. The announcement triggered a sharp 65% surge in African Gold’s share price.

Under the terms of the deal, African Gold shareholders will receive 0.0628 Montage shares for each A1G share held, representing a 59% premium to the last closing price and a 54% premium to the 10-day VWAP. This strong premium signals that Montage sees meaningful strategic value in African Gold’s assets and exploration portfolio.

The transaction values African Gold’s equity at approximately A$264 million, reflecting a significant re-rating from prior market levels. Notably, Montage already held a 17.3% stake in African Gold prior to this agreement, which underscores its long-standing interest and confidence in the company’s growth potential across its West African gold projects.

In essence, the acquisition aligns with Montage’s strategy to consolidate high-quality gold assets across West Africa, enhancing scale, development synergies, and regional dominance, while providing African Gold shareholders exposure to a larger, more diversified gold development platform listed on the Toronto Stock Exchange (TSX-V).

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A1G Shareholders Gain 59% Premium as Montage Builds Multi-Asset

Montage likely sees significant untapped upside within African Gold’s portfolio, which provides investors with added confidence in the strategic rationale behind the acquisition. Montage’s flagship Koné Gold Project is already well advanced, and the addition of African Gold’s Didievi Project introduces clear geographic and operational synergies within Côte d’Ivoire.

This acquisition effectively positions Montage to expand its total resource base and transition into a multi-asset West African gold producer, enhancing both scale and optionality across its development pipeline.

For African Gold shareholders, the implications are straightforward. They will receive a 59% premium to the pre-announcement share price, and since the transaction is all-scrip, existing investors will roll their holdings into Montage shares. This means they retain exposure to the upside potential of Didievi and Montage’s broader West African growth story, but without carrying the full development risk that typically comes with advancing a single-asset company.

A1G Board Backs Montage’s All-Scrip Merger

Because this is an all-scrip transaction, there is no cash outlay required from Montage. This structure helps preserve Montage’s strong liquidity position, which currently sits at around A$159 million in cash with no debt on its balance sheet as of the September 30 report. The company’s robust financial position and potential access to debt markets mean it is well placed to fund the parallel development of both the Didievi and Koné gold projects, accelerating its transition toward multi-asset production.

In the absence of a superior offer, the African Gold board and directors, who collectively own 11.6% of shares and hold 43% of options, have unanimously recommended the transaction and committed to vote in favour. This strong internal support signals alignment between management and shareholders regarding the long-term value creation potential of the merger.

Court approval for the scheme is expected in April 2026, with completion anticipated later that month, pending shareholder and regulatory approvals.

Adam Oehlman, CEO of African Gold, commented on the merger, stating:

“This transaction represents a compelling outcome. It validates the scale and strategic positioning of Didievi and provides shareholders with continued exposure to upside through ownership in a larger, well-capitalised gold company.”

Overall, the deal offers African Gold investors both immediate value realisation through the premium and ongoing participation in Montage’s broader West African growth story, underpinned by a strong balance sheet and accelerated development trajectory.