AngloGold Ashanti (ASX:AGG) proposes Corvus Gold acquisition

Company News

by Adrian Tan

AngloGold Ashanti (ASX:AGG), a South African-based gold miner with projects across nine countries, has submitted an acquisition proposal to the board of Corvus Gold.

AngloGold currently holds a 19.5 per cent indirect interest in Corvus. Under the proposal, AngloGold, under a wholly-owned subsidiary, would acquire all of the outstanding common shares of Corvus at Canadian $4 per Corvus share on a cash basis. The consideration payable to shareholders is approximately US$370 million.

Corvus owns North Bullfrog, Mother Lode and other exploration assets in southern Nevada's Beatty District, near AngloGold's Silicon, Transvaal and Rhyolite assets.

Christine Ramon, AngloGold’s Interim CEO, says: "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."

The combination of the Nevada assets is said to have the potential for significant synergies from economies of scale and integrated infrastructure, including processing facilities.

Shares in AngloGold Ashanti (ASX:AGG) are trading 1.9 per cent higher at $5.49.

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