AngloGold Ashanti to acquire Augusta Gold for $111M

AngloGold Ashanti (AU) and certain of its affiliates have entered into a definitive agreement with Augusta Gold to acquire all issued and outstanding shares of common stock of Augusta Gold at a price of C$1.70 per share of common stock in cash. The Price implies a fully-diluted equity value for Augusta Gold of approximately C$152M or approximately $111M. The Price represents a premium of approximately 28% to the closing price of Augusta Gold’s common stock on the Toronto Stock Exchange on 15 July, the day prior to the announcement of the Transaction and 37% to the volume-weighted average share price over the 20 days prior to announcement of the Transaction. Additionally, in connection with the Transaction, AngloGold Ashanti will provide funds for the repayment of certain stockholder loans which amounted to approximately $32.6M at 31 March. The acquired properties are adjacent to AngloGold Ashanti’s claims in the Beatty District and will provide additional Mineral Resources to AngloGold Ashanti’s inventory. The Transaction is expected to close in the Q4, subject to the satisfaction of customary closing conditions. Pursuant to the Transaction, Augusta Gold will become an indirect wholly-owned subsidiary of AngloGold Ashanti and Augusta Gold’s shares of common stock will no longer be listed on any public stock exchange or traded on any over-the-counter market. The board of directors of Augusta Gold unanimously approved, and recommended that Augusta Gold’s stockholders approve and adopt, the Merger Agreement and the Transaction.