Anglogold Ashanti to acquire Covus Gold

Mining firm Anglogold Ashanti

Mining firm , AngloGold Ashanti is  to acquire Corvus Gold and its entire portfolio of gold assets at Nevada in the United States of America.

The firm on Tuesday submitted a non-binding proposal to acquire for cash all issued and outstanding common shares of Corvus that it does not already beneficially own for total consideration of $370 million.

The proposal follows the announcement by Corvus on May 6 that it had entered into a $20 million unsecured loan and guaranty agreement with AngloGold’s North American subsidiary.

As a result of the loan agreement, AngloGold was granted an initial exclusivity period of 90 days, during which the company was allowed to conduct a detailed due diligence exercise on Corvus and its key assets. This initial exclusivity period would be extended by a further 30 days in the event AngloGold submits a letter of intent or proposal.

AngloGold’s offer, which values the Corvus common shares at C$4.00 ($3.20) each, represents a premium of approximately 55% to the price of C$2.58 ($2.0) recorded on the day prior to the loan agreement, a premium of approximately 23% to the closing price prior to the submission of the proposal, and a premium of approximately 20% to the last 10-day volume weighted average price on the TSX.

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