AngloGold Ashanti has received overwhelming support from Canada’s Corvus Gold shareholders in its bid to take over the company in a $370 million deal.

Upon completion of the transaction, AngloGold Ashanti would own 80.5 per cent of indirect stake in Corvus Gold, which it previously held shares less than 20 per cent.

The arrangement resolution was approved by approximately 99.45 per cent of the Common Shares voted at the Meeting including those held by AngloGold Ashanti Group.

Corvus Gold’s shareholders will be offered $3.2 (C$4) per share in cash for a complete takeover by AngloGold Ashanti.

Corvus has said it will apply for a final order of the Supreme Court of British Columbia for approval of the transactional arrangement on January 11, 2022.

Pending court approvals and certain customary conditions, Corvus expects the transaction to be effective on or around January 18, 2022, at which time Corvus will be delisted from the Toronto Stock Exchange (TSX) and Nasdaq.

The Company expects the delisting of its ordinary shares to become effective ten days following the filing, or January 28, 2022.

However, Corvus said the anticipated effective date may be delayed if the SEC postpones the effectiveness of the application to delist for other reasons.

“Concurrent with the delisting from Nasdaq, the Company intends to file a Form 15 with the SEC to terminate the registration of its common shares under the U.S. Securities and Exchange Act of 1934, and to suspend its reporting obligations with the SEC.”
Corvus Gold

Corvus-AngloGold Ashanti Transaction to Reduce Capital Intensity

Corvus is developing three gold and silver projects in the Beatty district of Nevada: the North Bullfrog and Mother Lode projects, along with other exploration assets in Nevada, US.

The transaction will deliver a district-wide consolidation in Nevada, enabling the Beatty district to become AngloGold Ashanti’s potential Tier 1 asset. The assets located in the Beatty district are either in close proximity to or contiguous with AngloGold Ashanti’s Silicon, Transvaal, and Rhyolite exploration assets.

Alberto Calderon, AngloGold Ashanti’s CEO commenting on the transaction, said:

“Placing these assets under single ownership will allow for significantly reduced capital intensity to develop the district with a phased and modular approach.”
Alberto Calderon, CEO, AngloGold Ashanti

The asset purchase is in line with the company’s strategy of growing ore reserve, building low-cost production and generating sustainable returns, Christine Ramon, the then interim CEO during the proposal phase of the purchase said.

“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.”
Christine Ramon, former interim CEO, AngloGold Ashanti

The asset purchase is also expected to provide an opportunity for the AngloGold Ashanti to establish a substantial, low-cost, long-life production base in the medium-term, and longer-term in a premier mining region.

Recall that, in the past year when AngloGold Ashanti began processes for the takeover, Corvus signed a $20 million unsecured loan and guaranty agreement with AngloGold’s subsidiary AngloGold Ashanti North America.

This agreement allowed AngloGold Ashanti to undertake a detailed due diligence exercise on Corvus Gold and its major assets.