Sanu Gold rises as Montage, Lundin maintain backing

Sanu Gold (CSE: SANU; US-OTC: SNGCF) shares hit their highest level in two years on Tuesday after the West Africa-focused junior announced a private placement backed by Montage Gold (TSXV: MAU; US-OTC: MAUTF) and the Lundin Family.

The placement would see Sanu issue about 42.85 million common shares priced at 28¢ each for total proceeds of $12 million. The financing was initially set at $10 million but expanded to $12 million later in the day.

Sanu Gold’s shares rose more than 16% to 36.5¢ in trading Tuesday in Toronto, having earlier hit a 52-week high of 38¢. That boosted the company’s market capitalization to about $140 million. The shares eased to close at 36¢ apiece on Wednesday.

Major shareholders 

Both Montage and Lundin have indicated their intention to participate in the placement and maintain their respective 19.9% and 10% interests. The two parties first became Sanu shareholders in late 2024 after investing a total of $10 million, joining AngloGold Ashanti (NYSE: AU) as major stakeholders.

The new financing is expected to support Sanu’s exploration activities in Guinea. The company holds three projects within the Siguiri Basin area, which is host to several producing mines and major discoveries such as AngloGold’s Siguiri and Nordgold’s Lefa. To date, Sanu has defined gold-bearing structures of several kilometres in strike length on each of its gold exploration permits.

Earlier this year, Sanu said its drilling on the Daina permit had resulted in the discovery of a new high-grade zone, with a highlight intercept of 51 metres grading 3.11 grams gold per tonne. The first-ever program at the Diguifara permit, located 20 km from the Siguiri gold mine, also confirmed wide mineralization, it added.