Strategic Investments Accelerate Gold Exploration in West Africa

Source: Streetwise Reports 01/03/2025

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) secures US$7.3 million in strategic funding to drive exploration in Guinea. Find out why the CEO says this news could accelerate the exploration of the company’s high-potential gold projects in Guinea.

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has solidified strategic partnerships through investments by Montage Gold Corporation and the Lundin family, collectively infusing approximately US$7.3 million into the company. Montage Gold acquired a 19.9% stake in Sanu Gold via a share exchange involving 2,337,921 Montage shares, valued at approximately US$4 million based on the market price of CA$2.35 per share at the time of the transaction. Concurrently, the Lundin family secured a 10% stake through a private placement of 4,945,304 common shares of Sanu Gold at CA$0.072 per share, equating to US$3.3 million.

The capital raised is earmarked for exploration activities across Sanu Gold’s Daina, Diguifara, and Bantabaye permits in Guinea’s Siguiri Basin, a region renowned for its prolific gold deposits. Proceeds will fund follow-up work to the current 10,000 meters of drilling and geophysical surveys currently in progress.

As per the news release, Montage Gold’s CEO, Martino De Ciccio, will now serve as Chair of Sanu Gold’s Board of Directors, alongside new Technical Advisor Silvia Bottero. This strategic alignment enhances Sanu Gold’s technical and operational capacity. De Ciccio noted that Montage Gold’s participation is aimed at supporting “exploration in one of the world’s most prospective gold regions.”

Sanu Gold’s CEO, Martin Pawlitschek, emphasized the transformative nature of these investments, highlighting the combined support from strategic investors, including AngloGold Ashanti plc. He stated, “These partnerships provide us with the capital, expertise, and strategic support to accelerate exploration on our high-potential gold projects in Guinea.”

Gold in 2025

The precious metals sector ended 2024 with optimism for the future, supported by strong historical performance and market positioning. On December 27, The Daily Gold noted that while gold gained 28% over the year, related equities, including gold and silver stocks, underperformed, rising by less than 20%. Jordan Roy-Byrne, writing for The Daily Gold, observed that gold mining stocks were “in position for an explosive breakout in 2025″ as they traded within long-term bullish bases. He highlighted that the assets of gold miner ETFs relative to all stock ETFs had dropped to near 17-year lows, presenting a unique opportunity for capital to move into the sector as macroeconomic conditions evolve.

On December 31, Stewart Thomson, writing for 321Gold, emphasized gold’s historic outperformance against fiat currencies, particularly the dollar. He noted that gold had surged from around US$100 in 1976 to approximately US$2,600 in 2024, describing it as a “26-bagger” over the same period. Thomson identified potential buying opportunities in oversold gold equities, such as GDX, as they hovered near major support levels. He stated that the broader market dynamics were favorable for gold investors, especially amid a weakening dollar and increasing demand for hard assets.

Also, on December 31, Matthew Piepenburg highlighted the predictability of gold’s rise, attributing it to global economic realities, including escalating debt and currency debasement. He pointed out that in 2024, gold reached record nominal highs in all major currencies, including the U.S. dollar. Piepenburg framed gold as a finite asset with infinite duration, contrasting it with fiat currencies, which he described as “an infinite asset with finite duration.” He concluded that historical trends and current debt-driven economic policies positioned gold for continued growth as a reserve asset.

Strategic Milestones Propel Sanu Gold’s Exploration Potential

Catalysts driving Sanu Gold are laid out in the company’s January 2024 Investor Presentation. Sanu Gold’s newly secured capital positions the company to advance exploration within Guinea’s Siguiri Basin, an area hosting several multi-million-ounce gold deposits, such as AngloGold Ashanti’s Siguiri Mine and Nordgold’s Lefa Mine, as well as recent multi-million-ounce gold discoveries such as Bankan The company’s ongoing drilling campaigns at the Daina and Diguifara permits target untested mineralized trends with significant potential. Initial results from the Daina project have demonstrated high-grade intercepts, including 15 meters at 5.48 grams per tonne gold and 21 meters at 4.75 grams per tonne gold, underscoring the exploration upside.

Key upcoming milestones include the continuation of the 10,000-meter drill program and the expansion of induced polarization geophysical surveys to refine drill targets. These initiatives aim to delineate additional high-grade zones and expand known mineralized structures, which remain open along strike and at depth.

Strategic partnerships further bolster Sanu Gold’s position. The Montage Gold investment includes participation rights in future equity offerings and technical advisory support, enhancing the company’s ability to execute exploration efficiently. Similarly, the Lundin family’s involvement signifies confidence in the company’s potential, adding robust financial backing to its operations. [OWNERSHIP_CHART-10892]

Sanu Gold’s exploration initiatives, backed by strong regional infrastructure and proximity to operating gold mines, set the stage for potential resource discoveries. With a clear focus on delivering results, the company aims to create significant value for shareholders while contributing to Guinea’s emerging mining sector.

Ownership and Share Structure

According to the company’s latest presentation, the largest shareholders now include strategic investors Montage at 19.9%, the Lundin Group at 10%, Anglo Gold Ashanti at 10 % and Capital at 10%.

Institutional investors include Scotia Global Asset Management, US Global Investors, Lowell Resources Funds Management, and Palos Management, which collectively make up 17% of the shareholders.

Management, founders, and insiders own around 22%, with another 22% being held by high-net-worth individuals. 15% is held by retail investors. 

The market cap for Sanu Gold is CA$75 million with 383.5 million common shares. The 52-week range for the stock is CA$0.03 and CA$0.20.

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Important Disclosures:

1. Sanu Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold Corp.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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( Companies Mentioned: SANU:CSE;SNGCF:OTCQB;L73:FRA, )

Source: https://www.streetwisereports.com/article/2025/01/03/strategic-investments-accelerate-gold-exploration-in-west-africa.html