South African miner AngloGold Ashanti submits proposal to buy Corvus Gold

VANCOUVER – AngloGold Ashanti Ltd. says it has made an offer to buy the stake in Corvus Gold Inc. that it does not already own for about $460 million.

The South African gold miner already holds a 19.5 per cent indirect interest in Vancouver-based Corvus, which owns exploration assets in southern Nevada’s Beatty district that are near Ashanti’s exploration assets.

AngloGold Ashanti is offering $4 in cash per Corvus share, including payments for Corvus’ outstanding options, which represents a premium of about 55 per cent from where the shares traded on May 5 before the announcement of a Corvus loan from the North American subsidiary of AngloGold Ashanti.

It also represents a 20 per cent for the premium to the 10-day volume weighted average price of Corvus shares on the TSX.

The combination would further consolidate one of the largest new gold districts in Nevada and allow AngloGold Ashanti to establish a low-cost, long-life production base in a premier mining jurisdiction.

The deal would provide cost-savings from economies of scale and integrated infrastructure, including processing facilities.

This report by The Canadian Press was first published July 13, 2021.

Companies in this story: (TSX:KOR)