Aurum offloads soaring Canadian shares for $23m

Aurum Resources has swelled its coffers to $40 million after offloading 2.89m Canadian-listed Montage Gold shares for $23 million, banking a 102 per cent profit on stock it received only months ago.

The sale, disclosed in the latest company update, shows the stock was sold at an average of C$7.30 per share, more than double the C$3.61 price at which the shares were issued in lieu of cash for Montage’s strategic 9.9 per cent investment in Aurum.

Back in May, Aurum completed a jumbo $35.6 million capital raise to fuel the company’s aggressive exploration program at its flagship 2.4-million-ounce Boundiali gold project in Côte d’Ivoire. 

Of the funds raised, $19.86 million came from the well credentialed Lundin family and Zhaojin Capital, while a further $11.71 was paid for in Montage shares. The balance of the funds were provided by professional investors. 

The share sale caps a remarkable run, not just for Aurum, but also for Montage, which has been on a tear since late 2024 thanks to near-textbook execution at its 5-million-ounce Koné gold project in Côte d’Ivoire. Sitting just 80 kilometres south of Aurum’s main operations, Koné is forecast to produce 300,000 ounce per year with the first pour pegged for mid-2027.

Aurum Resources managing director Dr Caigen Wang said: “This sale helps us deliver a boost to our cash balance as we continue to rapidly advance exploration at Boundiali and Napié, with resource updates expected for both early next year, and a pre-feasibility study for Boundiali also set for completion.”

For Aurum, the timing could hardly be better. The sale means the company now sits on one of the healthiest cash balances in the ASX junior gold sector. In short, it now has more than enough to bankroll the Boundiali pre-feasibility study, ongoing resource drilling and technical work across its West African portfolio without dipping back into the market. 

Boundiali stretches across 400 square kilometres of productive greenstone belt that includes Resolute’s 11.5-million-ounce Syama mine. It also lies in a prime corridor flanked by Perseus Mining’s Sissingué and Bagoe operations and Barrick’s Tongon mine – all within a few hundred kilometres.

Aurum has been peppering the belt with significant drill hits since 2024, culminating in a rapid resource growth this year. Multiple intercepts above 50 grams per tonne have continued to confirm the project’s high-grade core, while its broad, shallow zones have reinforced the deposit’s potential as a scalable bulk-tonnage development.

Alongside work at Boundiali, the company is progressing its nearby 868,000-ounce Napié project - acquired earlier this year through a successful all-scrip takeover of Mako Gold. Aurum recently kicked off a 30,000-metre diamond program aimed at sharpening the geological model at site, which will feed into a resource upgrade, slated for next year.

Adding to its burgeoning inventory in the gold-rich region, the company has also recently secured a 35 per cent stake in Ivorian explorer Major Star Plus. The deal - with a 95 per cent interest earn-in option - significantly expands Aurum’s gold exploration footprint through three permit applications positioned right alongside Boundiali.

Armed with $40 million in the bank, a bulging project pipeline and rigs running hot across Côte d’Ivoire, Aurum is potentially shaping up as a standout gold play in 2026.

Should Boundiali’s high-grade core keep spitting out big numbers and Napié’s upgrade fire, the company could soon move from explorer status to become a serious development force in West Africa.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au