Corvus, together with AngloGold Ashanti’s Nevada assets would consolidate one of the largest new gold districts in Nevada
AngloGold Ashanti has agreed to acquire the remaining 80.5% stake in Canada-based Corvus Gold, at a price of C$4.10 ($3.24) per share, totalling around $370m in cash.
In July this year, the South Africa-based gold miner has initially made an offer to acquire Corvus Gold at the same price.
The purchase price of $3.24 represents a premium of about 26% to the closing price of Corvus common shares on the Toronto Stock Exchange on 12 July 2021.
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.
AngloGold Ashanti chief executive officer and executive director Alberto Calderon said: “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.”
AngloGold Ashanti intends to fund the transaction from its current cash balance.
RBC Capital Markets served as financial advisor to AngloGold Ashanti in connection with the transaction, while Stikeman Elliott served as its Canadian legal counsel.
The transaction is expected to close in first quarter 2022, subject to receipt of court approval and other customary closing conditions including 66.66% votes by the Corvus shareholders.
Corvus president and chief executive officer Jeffrey Pontius said: “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.”