SEATTLE (Scrap Monster): AngloGold Ashanti announced that it has signed a definitive agreement to purchase the remaining 80.5% remaining stake in Corvus Gold. It must be noted that the company currently holds a 19.5% indirect interest in Corvus.
According to company press release, AngloGold Ashanti has agreed to acquire the remaining 80.5% of common shares of Corvus not already owned by it, at a price of C$4.10 per common share in cash. The total transaction cost to the company is estimated at around $370 million. The offer price represents a premium of nearly 26% to the closing price of Corvus shares on TSX on the day prior to the announcement of submission of non-binding proposal to Corvus.
The addition of Corvus to AngloGold Ashanti’s Nevada assets consolidates the Beatty gold district operations and provides opportunity for the company to establish low-cost production base in a premier mining jurisdiction.
The company foresees Beatty District to become its potential Tier-1 asset, the further development plans of which will be communicated during next year. The inclusion of the Corvus assets will help AngloGold Ashanti to have first production in North America in the next three to four years, said Alberto Calderon, CEO and Executive Director, AngloGold Ashanti.