AngloGold Ashanti Proposes $370 Million Acquisition of Corvus Gold
July 13 2021 - 11:00AM
Dow Jones News
By Joe Hoppe
AngloGold Ashanti Ltd. said Tuesday it has submitted a proposal
to acquire all of the outstanding issued shares of Corvus Gold
Inc., for an estimated $370 million.
The Johannesburg-based mining company, which already holds a
19.5% indirect interest in gold exploration and development company
Corvus, will offer shareholders 4.0 Canadian dollars ($3.20) a
share, payable in cash. The offer is a 23% premium to the closing
share price of Corvus prior to the submission of the proposal, and
AngloGold estimated the total proposed cash consideration to be
around $370 million.
AngloGold said the acquisition would fit its strategy of growing
its ore reserves, building low-cost production and generating
sustainable returns. The acquisition and combination of Corvus and
AngloGold's assets in Nevada would also create one of the largest
new gold districts in the state, allowing for greater economies of
scale and integrated infrastructure.
The company said it is working closely with the management of
Corvus to agree the terms of, and implement the transaction.
Shares in AngloGold in Johannesburg at 1425 GMT were up ZAR4.81
pence, or 1.7%, at ZAR289.04 pence.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
July 13, 2021 10:45 ET (14:45 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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