Christine explains that the acquisition of Corvus shares presents AngloGold Ashanti with a unique opportunity.
AngloGold Ashanti has announced that it has submitted a non-binding proposal to the board of directors of Corvus Gold to acquire all of Corvus issued and outstanding common shares that AngloGold doesn’t already beneficially own for cash.
According to AngloGold Ashanti CFO Christine Ramon the proposal is fully aligned to the mine’s strategy of growing ore reserves, building low-cost production and generating sustainable returns. “We have a unique opportunity to combine Corvus’ assets with our own to create a meaningful new production base for AngloGold Ashanti in the medium and longer term,” she says.
AngloGold Ashanti proposes to acquire all issued and existing Corbus shares for C$4.00 per Corvus share in cash. The mine estimates that the total cash consideration payable to shareholders for the proposed transaction will be approximately US$370 million (R5.4 billion).
The proposal comes after Corvus announced on 6 May that it had entered into an unsecured loan and guaranty arrangement with AngloGold Ashanti North America, an indirect fully owned subsidiary of AngloGold Ashanti.
AngloGold Ashanti, which is a wholly owned subsidiary of Corvus Gold, currently owns a 19.5 percent indirect stake in Corvus. Corvus owns North Bullfrog, Mother Lode, and other exploration assets in southern Nevada’s Beatty District that are adjacent to or contiguous with AngloGold Ashanti’s exploration assets of Silicon, Transvaal and Rhyolite.
