AngloGold Ashanti submits proposal to buy Corvus Gold
The acquisition is consistent with AngloGold Ashanti’s Ore Reserve expansion strategy.
AngloGold Ashanti has announced that it has submitted a non-binding proposal to the board of directors of Corvus Gold under which its direct wholly owned subsidiary, AngloGold Ashanti, would be willing to acquire for cash all of Corvus issued and outstanding common shares which AngloGold does not already beneficially own.
AngloGold Ashanti currently owns a 19.5 percent indirect stake in Corvus, which was founded in British Columbia, Canada, and is traded on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NASDAQ). Corvus owns North Bullfrog, Mother Lode, and other exploration assets in southern Nevada’s Beatty District that are adjacent to or contiguous with AngloGold Ashanti’s exploration assets of Silicon, Transvaal and Rhyolite.
“The proposal is fully aligned to our strategy of growing Ore Reserve, building low-cost production and generating sustainable returns. We have a unique opportunity to combine Corvus’ assets with our own – in the world’s top-ranked mining jurisdiction – to create a meaningful new production base for AngloGold Ashanti in the medium and longer term,” said AngloGold Ashanti’s CFO Christine Ramon (pictured).
The proposal comes after Corvus announced on 6 May that it had entered into an unsecured loan and guaranty arrangement with AngloGold Ashanti North America, an indirect fully owned subsidiary of AngloGold Ashanti.
AngloGold Ashanti proposes to acquire all issued and existing Corvus shares for C$4.00 per Corvus share in cash. AngloGold Ashanti estimates that the total cash consideration payable to shareholders for the proposed transaction will be approximately US$370 million (R5.4 billion).