The Johannesburg-based AngloGold Ashanti has finalized a deal on July 13 to buy all outstanding shares of Canadian bullion miner Corvus Gold Inc.. The move will increase its precious metal reserves and build low-cost production.
AngloGold is chaired by South African businesswoman, banker and C-suite executive Maria Ramos. She assumed the role in 2020 after serving as the CEO of Transnet and Absa Group, as well as the director-general of South Africa’s National Treasury.
The world’s third-largest gold producer, AngloGold already holds a 19.5-percent indirect stake in the Canadian miner. The purchase will deepen the company’s stake in the gold explorer.
AngloGold stated that the deal offers an opportunity to establish a meaningful, low-cost, long-life production base in a leading jurisdiction in the mid- and long-term.
“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,” AngloGold Interim CEO Christine Ramon said in the statement.
As of the time of the purchase, Corvus’ shares were trading at 3.27 Canadian dollars and AngloGold offered a price of C$4 for each share, valuing Corvus at just over C$500 million ($399.57 million), Reuters reported.
The cash-deal will consolidate its investment in Corvus and allow it to develop deposits in Nevada, where the Canadian explorer is searching for gold. AngloGold offered the all-cash deal at a premium of 55 percent above the market price of C$2.58 ($2.06).
Over a week ago, the Johannesburg Stock Exchange-listed company announced Alberto Calderon as its new CEO, effective this September. Ramon has served as the interim CEO since Kelvin Dushnisky left his post last year. His resignation led to a drop in the company’s share price on the South African bourse.
