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Corvus agrees to $370m takeover by AngloGold Ashanti

View of Mother Lode open pit. (Image courtesy of Corvus Gold.)

Canada’s Corvus Gold (TSX, NASDAQ: KOR) said the majority of its shareholders voted in favour of AngloGold Ashanti (NYSE: AU) (JSE: ANG) taking control of the company in a deal estimated at about $370 million.

The South African gold major offered last year to acquire the remaining 80.5% of the shares of Corvus it doesn’t already own.

According to AngloGold, this combination would consolidate the Beatty District, 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.

The deal allows AngloGold Ashanti to establish a low-cost production base in a premier mining jurisdiction, in the medium and longer term, the miner said.

The company said it plans to develop North Bullfrog first, with production in the next three to four years. Next in line would be Silicon, Merlin (including Lynnda Strip) and Mother Lode. Targets will be considered with strict reference to the company’s capital allocation framework.

Pending court approvals and customary approvals, the companies expect the transaction to be effective on or around January 18, at which time Corvus will be delisted from the TSX and Nasdaq.