Corvus Gold Inc. (“Corvus”) and AngloGold Ashanti Limited (“AngloGold Ashanti”) are pleased to announce that they have entered into a definitive arrangement agreement pursuant to which AngloGold Ashanti has agreed to acquire the remaining 80.5% of common shares of Corvus not already owned by AngloGold Ashanti (the “Transaction”) at a price of C$4.10 per common share (the “Offer Price”) in cash.
The Transaction implies a total equity value of approximately C$570 million (approximately US$450 million).
The Offer Price represents a premium of approximately 26% to the closing price of Corvus common shares on the Toronto Stock Exchange (“TSX”) on 12 July 2021, the day prior to the announcement that AngloGold Ashanti submitted a non-binding proposal to Corvus, and a premium of approximately 59% to the closing price of Corvus common shares on the TSX on 5 May 2021, the day prior to the announcement of the loan agreement and exclusivity.
The combination of Corvus and AngloGold Ashanti’s Nevada assets further consolidates one of the largest new gold districts in Nevada (the Beatty District) and provides the opportunity for AngloGold Ashanti to establish a meaningful, low-cost production base in a premier mining jurisdiction.
Consolidation of the Beatty District has the potential for significant synergies due to economies of scale and integrated infrastructure, including processing facilities at an attractive capital intensity.
Fort Capital Partners provided an independent formal valuation and independent fairness opinion to the Special Committee of Corvus.