Canadian miner Montage Gold announced that Chinese mining firm Zijin Mining Group will acquire a 9.9% strategic stake in the company through a brokered private placement. Zijin Mining will purchase 32.7 million shares at C$1.75 per share, totaling nearly C$57.3 million ($41.90 million), with the offering expected to complete by August 12.
This investment comes as Canada tightens its Investment Canada Act, which reviews foreign company deals for national security concerns. In 2022, three Chinese firms were ordered to divest from Canadian critical minerals due to such concerns. Earlier this year, Zijin Mining scrapped plans to acquire a 15% stake in Solaris Resources, fearing it would not meet foreign investment standards.
Canada has indicated that major deals involving its critical minerals producers will only be approved under exceptional circumstances. However, gold is not listed among Canada’s critical minerals.
In addition to Zijin’s stake, the Lundin Family Trust will increase its holding in Montage Gold from 17.7% to 19.9%. Proceeds from the offering will fund development and exploration at Montage’s Kone Project in Côte d’Ivoire.
