AngloGold Ashanti has announced it has submitted a non-binding proposal to the board of directors of Corvus Gold Inc., under which its subsidiary, AngloGold Ashanti Holdings plc., has offered to acquire for cash all of the issued and outstanding common shares of Corvus which AngloGold does not already beneficially own.
AngloGold currently holds a 19.5 percent indirect interest in Corvus, which is incorporated in British Columbia, Canada, and listed on the Toronto Stock Exchange 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’s exploration assets of Silicon, Transvaal and Rhyolite.
Christine Ramon, AngloGold’s Interim Chief Executive Officer, 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’s Nevada assets further consolidates one of the largest new gold districts in Nevada and provides the opportunity for AngloGold to establish, in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining jurisdiction.
Consolidation of the Beatty District has the potential for significant synergies from economies of scale and integrated infrastructure including processing facilities. The combined asset base allows for streamlined engagement with federal, state and local stakeholders to advance and achieve shared sustainability goals and other district benefits, such as opportunities to design projects incorporating renewable energy, as well as develop conservation and other local projects in conjunction with the Beatty community.
AngloGold has a long track record of operating gold mines in the United States, where it operated the Cripple Creek & Victor mine in Colorado from acquisition in 1999 through to its sale to Newmont Corporation in 2015 and the Jerritt Canyon Gold mine in Nevada from acquisition in 1999 through to its sale in 2003.
AngloGold is currently still conducting closure monitoring activities at the Big Springs mine in Nevada that was closed in 1994. The company has a North American regional office in Denver, Colorado, from where it manages its U.S. business interests as well as a global greenfield exploration portfolio, including its portfolio in the United States.
AngloGold said it 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. It added that it has completed all technical, legal and financial due diligence that would impact the value of the proposal.