AngloGold Ashanti submits proposal to acquire Corvus Gold for US$370 million

AngloGold Ashanti Limited has announced that a non-binding proposal has been submitted to the board of directors of Corvus Gold under which its direct wholly owned subsidiary, AngloGold Ashanti Holdings plc (“AGAH”), would be willing to acquire for cash all of the issued and outstanding common shares of Corvus.

AngloGold Ashanti currently holds a 19.5% indirect interest in Corvus, which is incorporated in British Columbia, Canada and listed on the Toronto Stock Exchange (“TSX”) and NASDAQ.

Corvus owns North Bullfrog, Mother Lode and other exploration assets located in southern Nevada’s Beatty District, which are in close proximity to, or contiguous with, AngloGold Ashanti’s exploration assets of Silicon, Transvaal and Rhyolite.

Christine Ramon, AngloGold Ashanti’s interim chief executive officer in a statement said: “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.”

The combination of Corvus’ and AngloGold Ashanti’s Nevada assets further consolidates one of the largest new gold districts in Nevada and provides the opportunity for AngloGold Ashanti to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction.

“The proposal follows the announcement by Corvus on 6 May 2021 that it had entered into a US$20 million unsecured loan and guaranty agreement with AngloGold Ashanti North America Inc., an indirect wholly owned subsidiary of AngloGold Ashanti.

AngloGold Ashanti estimates that the total cash consideration payable to shareholders for the proposed transaction is approximately US$370 million. AngloGold Ashanti is required under applicable laws and regulations to publicly file the proposal to Corvus in the United States,” the statement said.

“The company is focused on working closely with Corvus’ board of directors and management in a friendly manner to agree the terms of, and implement, the proposed transaction.

“Following the submission of the Proposal, AngloGold Ashanti expects to engage with Corvus’ Board of Directors regarding the Proposed Transaction and in parallel complete certain limited confirmatory due diligence relating to Corvus and its assets. The Company has completed all technical, legal and financial due diligence that would impact the value of the proposal.

“Following the support and recommendation of the Board of Corvus, this will require that shareholders of Corvus vote in favour of the Proposed Transaction. In order to become effective, the plan of arrangement will also be subject to Canadian court approval,” the statement said.

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