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AngloGold Ashanti to acquire remaining Corvus Gold for $370 million

Kitco News

AngloGold Ashanti will acquire Corvus Gold for about $370 million after the two companies came terms.

Announced today AngloGold Ashanti will acquire the remaining 80.5% of common shares of the Nevada development company not already owned by AngloGold Ashanti at a price of C$4.10 per common share.

In July the two companies announced they were in acquisition discussions.

The companies said the all-cash consideration of C$4.10 per share represents a premium of approximately 26% to the closing price of Corvus common shares on the TSX on 12 July 2021, the day prior to the announcement that AngloGold Ashanti submitted a non-binding proposal to Corvus.

AngloGold Ashanti said it currently holds a 19.5% indirect interest in Corvus, which owns North Bullfrog, Mother Lode and other exploration assets located in southern Nevada's Beatty District, which are in close proximity to, or contiguous with, AngloGold Ashanti's exploration assets of Silicon, Transvaal and Rhyolite.

Alberto Calderon, AngloGold Ashanti’s Chief Executive Officer and Executive Director, said he looks forward to the consolidation of one of the largest new gold districts in Nevada, the Beatty District.

“We are pleased to reach an agreement with Corvus that we believe is value enhancing for all stakeholders. 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. 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.”

Jeffrey Pontius, Corvus’ President and Chief Executive Officer, weighed in.

“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. 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.”

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