The all-cash offer represents a premium of about 26% to the stock’s closing price on the TSX on July 12, 2021, the day prior to the announcement of AngloGold’s non-binding proposal to Corvus.
According to AngloGold, this combination would further consolidate one of the largest new gold districts in Nevada. Corvus presently holds the North Bullfrog, Mother Lode and other exploration assets located in southern Nevada’s Beatty District, in close proximity to or contiguous with AngloGold’s exploration assets of Silicon, Transvaal and Rhyolite.
“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, stated in a news 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.
AngloGold’s conceptual development plan for the district envisions North Bullfrog being developed first, with production in the next three to four years, followed by Silicon, Merlin (including Lynnda Strip) and Mother Lode. Targets will be considered with strict reference to the company’s capital allocation framework.
Further details on AngloGold’s integrated development plan for the Beatty District will be communicated during 2022, the gold major stated.
Shares of Corvus Gold saw a gain of 1.5% by noon EDT Monday, giving the gold explorer a market value of about C$511.8 million.
