AngloGold Ashanti to acquire Corvus

AngloGold Ashanti signed a definitive agreement to purchase the remaining stake in Corvus Gold in the Beatty District for $370 million, according to the press release.

AngloGold has agreed to acquire the remaining 80.5 percent of common shares of Corvus at a price of C$4.10 per common share in cash, according to the press release.

AngloGold Ashanti currently holds a 19.5 percent indirect interest in Corvus, which owns North Bullfrog, Mother Lode and other assets located in southern Nevada’s Beatty District, which are in close proximity to AngloGold’s exploration assets.

The district will see a “unified presence” going forward from AngloGold for the area north and east of Beatty that is covered by the claims held by Corvus and AngloGold Ashanti, said Chris Nthite, vice president of global communications and corporate affairs at AngloGold Ashanti.

“This will simplify the engagement for stakeholders at the local, county, state and federal levels because there will be one group to work with for permitting and other matters,” Nthite said in an email. “The transaction also makes economic, infrastructural and environmental sense for the area – reducing the need for duplicated facilities between the Corvus and AngloGold Ashanti areas if they were operated separately.”

The transaction is targeted to close in the first quarter of 2022, Nthite said.

“Following the close of the transaction, we expect that plans in place for 2022 from each company will continue to advance for Corvus’ North Bullfrog project area as well as for AngloGold Ashanti’s Silicon project area. This work might include additional permitting activity as well as the continuation of drilling at the gold deposits within the unified project area,” Nthite said.

“This transaction delivers a compelling, district-wide consolidation in Nevada, which allows for the Beatty District to become a potential Tier 1 asset for AngloGold Ashanti. The inclusion of these assets in our portfolio will enable AngloGold Ashanti to have first production in North America in the next three to four years, further improving the overall geographic balance of our portfolio,” Alberto Calderon, AngloGold’s CEO and executive director, said in a press release.

“Placing these assets under single ownership will allow for significantly reduced capital intensity to develop the district with a phased and modular approach, providing for a meaningful, low-cost production base in the medium and longer term,” he added.

Beatty District is one of the largest gold districts in Nevada. AngloGold Ashanti holds several exploration assets in the Beatty District including Silicon, Merlin, Transvaal and Rhyolite.