Join our daily newsletter At The Bell to receive exclusive market insights
- AngloGold Ashanti (AGG) has submitted a proposal to purchase Corvus Gold for US$370 million (nearly A$496 million)
- The company currently holds a 19.5 per cent indirect interest in Corvus, which owns gold exploration assets in Nevada
- The proposal follows the unsecured loan and guaranty agreement, which was signed by the companies in May
- AngloGold’s offer values Corvus shares at C$4.00 (A$4.29) per share — a 55 per cent premium on its recent trading levels
- On the market close, AngloGold was up 1.48 per cent and trading at $5.47 per share
AngloGold Ashanti (AGG) have submitted a proposal to purchase Corvus Gold for US$370 million (A$496 million).
The company currently holds a 19.5 per cent indirect interest in Corvus, which owns gold exploration assets in Nevada.
The proposal follows the unsecured loan and guaranty agreement, which was signed by the companies in May.
Due to the loan agreement, AngloGold was granted an initial exclusivity period of 90 days, during which the company was allowed to conduct a detailed
due diligence exercise on Corvus and its key assets.
Under this loan agreement, the initial exclusivity period would be extended by 30 days if AngloGold submits a letter of intent or proposal.
AngloGold’s offer values Corvus shares at C$4.00 (A$4.29) per share, a 55 per cent premium of the previous closing price of C$2.58 (A$2.76).
The company believes the combination of the companies’ Nevada assets further consolidates one of the largest new gold districts in the world.
AngloGold Ashanti’s Interim Chief Executive Office Christine Ramon is pleased with the proposal.
“The proposal is fully aligned to our strategy of growing Ore Reserve, building low-cost production and generating sustainable returns.
“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.”
On the market close, AngloGold was up 1.48 per cent and trading at $5.47 per share.
