South African gold mining company AngloGold Ashanti announced earlier this week that it has agreed to purchase all outstanding shares in Canadian bullion miner Corvus Gold in an effort to expand its overseas reach. The all-cash deal will be conducted at a 55% premium to the market price of 2.58 Canadian dollars ($2.06). Currently, Corvus’s market value is 3.27 Canadian Dollars.
Headquartered in the city of Vancouver, Corvus Gold owns a significant portion of land in the Beatty District in the U.S. state of Nevada; an area that is contiguous to AngloGold’s Silicon, Transvaal, and Rhyolite exploration assets.
According to AngloGold, the deal will present an opportunity to consolidate one of the largest gold exploration districts in Nevada. The purchase of Corvus Gold should also enable AngloGold to pursue the development of a low-cost, long-life production base in what has long been regarded to be a premier mining jurisdiction.
In an official public statement, AngloGold Ashanti’s Interim Chief Executive Officer Christine Ramon provided the following remark: “The proposal is fully aligned to our strategy of growing ore reserve, building low-cost production and generating sustainable returns.”
