South Africa-based gold miner AngloGold Ashanti has offered to acquire the remaining 80.5% of Corvus Gold for approximately US$370 million in order to fully own Corvus Gold. Corvus Gold is a Canadian-listed junior exploration and development gold company.
According to AngloGold Ashanti's non-binding proposal, Corvus Gold shareholders will receive 4 Canadian dollars (3.2 US dollars) in cash per share. Corvus Gold said: “The management and the board of directors are reviewing the proposal in accordance with their fiduciary responsibilities and commitment to maximize shareholder value. There is no further comment at this time. No shareholder action is required at this time.”
Currently, AngloGold Ashanti indirectly holds 19.5% of Corvus Gold. Corvus Gold owns the North Bullfrog and Mother Lode projects and other exploration assets in Nevada, USA. These assets are located in the Beatty area, close to or adjacent to AngloGold Ashanti's silicon, Transvaal and rhyolite exploration assets.
Christine Ramon, interim CEO of AngloGold Ashanti, said: “This proposal is fully in line with our strategy of increasing ore reserves, establishing low-cost production and generating sustainable returns. We have a unique opportunity to combine Corvus’s assets with our own assets-in The world's top mining jurisdiction-combined to create a meaningful new production base for AngloGold Ashanti in the medium and long term."
According to AngloGold Ashanti, the merger of its Nevada state assets and Corvus Gold assets will further consolidate the new gold zone in the U.S. state. In addition, in the medium and long term, this will give the company the opportunity to establish a large-scale, low-cost, and long-life production base in major mining areas. AngloGold Ashanti stated that its acquisition proposal was made after Corvus Gold announced in May 2021 that it had signed a $20 million unsecured loan and guarantee agreement with its subsidiary AngloGold Ashanti North America.
Keywords: International Engineering News
The gold mining giant said that the loan agreement provided it with an exclusive period of 90 days during which it was allowed to conduct detailed due diligence on Corvus Gold and its main assets.Editor/Baohongying
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