Resolute Mining says it will pay Mali $160 million in tax dispute
The company’s shares in Sydney were suspended on Thursday, after tumbling 40% since news of the detention of CEO Terry Holohan.
AngloGold Ashanti (NYSE: AU) announced on Monday that it has signed a definitive agreement to purchase the remaining stake in Corvus Gold (TSX: KOR). AngloGold currently holds a 19.5% indirect interest in Corvus.
As previously announced in July, AngloGold had submitted an offer to buy 80.5% of the Corvus common shares it does not currently own at a price of C$4.10 per share. This would value the transaction at approximately $370 million, and the offer implies a total equity value for all Corvus common shares and outstanding options of C$570 million ($450 million).
The all-cash offer represents a premium of about 26% to the stock’s closing price on the TSX on July 12, 2021, the day prior to the announcement of AngloGold’s non-binding proposal to Corvus.
According to AngloGold, this combination would further consolidate one of the largest new gold districts in Nevada. Corvus presently holds the North Bullfrog, Mother Lode and other exploration assets located in southern Nevada’s Beatty District, in close proximity to or contiguous with AngloGold’s exploration assets of Silicon, Transvaal and Rhyolite.
Corvus holds the North Bullfrog, Mother Lode and other exploration assets located in southern Nevada’s Beatty District, in close proximity to AngloGold’s exploration assets
“This transaction delivers a compelling, district-wide consolidation in Nevada, which allows for the Beatty District to become a potential Tier 1 asset for AngloGold Ashanti. The inclusion of these assets in our portfolio will enable AngloGold Ashanti to have first production in North America in the next three to four years, further improving the overall geographic balance of our portfolio,” Alberto Calderon, AngloGold’s CEO and executive director, said in a news release.
“Placing these assets under single ownership will allow for significantly reduced capital intensity to develop the district with a phased and modular approach, providing for a meaningful, low-cost production base in the medium and longer term,” he added.
AngloGold’s conceptual development plan for the district envisions North Bullfrog is being developed first, with production in the next three to four years, followed by Silicon, Merlin (including Lynnda Strip) and Mother Lode. Targets will be considered with strict reference to the company’s capital allocation framework.
Further details on AngloGold’s integrated development plan for the Beatty District will be communicated during 2022, the company said.
Shares of Corvus Gold saw a gain of 1.5% by noon EDT Monday, giving the gold explorer a market value of about C$511.8 million ($403m).
