AngloGold Ashanti to Acquire Remaining Stake in Corvus Gold for $370 Million
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AngloGold Ashanti has agreed to acquire the remaining 80.5 percent stake in Canada-based Corvus Gold, at a price of C$4.10 ($3.24) per share, totaling around $370 million in cash.
North American gold exploration and development company Corvus is focused on gold-silver mining projects at North Bullfrog, Lynnda Strip and Mother Lode in the Beatty District of Nevada.
Corvus deposits, together with AngloGold Ashanti’s Nevada assets would consolidate the Beatty District, one of the largest new gold districts in Nevada.
It enables AngloGold Ashanti to establish a low-cost production base in a premier mining jurisdiction, in the medium and longer term.
“This transaction delivers a compelling, district-wide consolidation in Nevada, which allows for the Beatty District to become a potential Tier 1 asset for AngloGold Ashanti. The inclusion of these assets in our portfolio will enable AngloGold Ashanti to have first production in North America in the next three to four years, further improving the overall geographic balance of our portfolio,” said AngloGold Ashanti Chief Executive Officer and Executive Director Alberto Calderon.
“Placing these assets under single ownership will allow for significantly reduced capital intensity to develop the district with a phased and modular approach, providing for a meaningful, low-cost production base in the medium and longer term,” added Calderon.
The transaction is expected to close in first quarter 2022, subject to receipt of court approval and other customary closing conditions including 66.66 percent votes by the Corvus shareholders.
“The proposed all-cash offer provides a compelling opportunity for Corvus shareholders to realize significant value and eliminates exposure to future capital requirements to fund construction of Corvus’ projects,” said Corvus President and Chief Executive Officer Jeffrey Pontius.
“AngloGold Ashanti has been a supportive shareholder of Corvus since its inception and has supported us in our capital raising needs along the way. AngloGold Ashanti’s long history of successful and responsible exploration, discovery, mine building and operating expertise will be a significant benefit to the region and all of its stakeholders,” added Pontius.
Source: NS Energy
About AngloGold Ashanti
AngloGold Ashanti, with its head office in South Africa, is an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities across nine countries on four continents.
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