AngloGold Ashanti plc,a multinational gold mining company announced today that has entered into an agreement to acquire a Canadian mining company Augusta Gold and agreed to pay more than R1.9 billion in cash.
AngloGold Ashanti is a dual-listed in the New York Stock Exchange(NYSE:AU) and Johannesburg Stock Exchange(JSE:ANG),was incorporated in England and Wales.
AngloGold Ashanti plc("AngloGold Ashanti") and certain of its affiliates have entered into a definitive agreement(the "Merger Agreement") with Augusta Gold Corp. ("Augusta Gold") to acquire all issued and outstanding shares of common stock of Augusta Gold (the "Transaction") at a price of C$1.70 per share of common stock (the "Price") in cash, the statement reads.
The statement added that the Price implies a fully-diluted equity value for Augusta Gold of approximately C$152 million (approximately US$111 million).The Price represents a premium of approximately 28% to the closing price of Augusta Gold's common stock on the Toronto Stock Exchange("TSX") on 15 July 2025,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 US$32.6 million at 31 March 2025.
The statement highlighted that the Transaction allows AngloGold Ashanti to further consolidate its footprint in the Beatty District by acquiring Reward,a permitted,feasibility stage project,the Bullfrog deposit,and all tenements surrounding each of these properties.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.
"This acquisition reinforces the value we see in one of North America's most prolific gold districts,"said AngloGold Ashanti CEO Alberto Calderon."We believe that securing these properties will not only solidify our leading position in the most important new gold district in the U.S.,but will also improve our ability to develop the region under an integrated plan - with more flexibility,greater access,better infrastructure sharing,and cohesive engagement with all stakeholders".
The statement further stated that the Transaction is expected to close in the fourth quarter of 2025,subject to the satisfaction of customary closing conditions,including the approval of the holders of a majority of outstanding shares of Augusta Gold common stock,as well as the approval by a majority of the votes cast by holders of outstanding shares of Augusta Gold common stock excluding certain related parties,at a stockholder meeting expected to be held in the fourth quarter of 2025.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(the "Augusta Gold Board") unanimously approved,and recommended that Augusta Gold's stockholders approve and adopt,the Merger Agreement and the Transaction.Prior to the Augusta Gold Board approval,the audit committee of the Augusta Gold Board reviewed,and recommended that the Augusta Gold Board approve,the Merger Agreement and the Transaction.All directors and certain executive officers of Augusta Gold,as well as Augusta Investments Inc.,holding shares of Augusta Gold common stock representing in the aggregate approximately 31.5% of Augusta Gold's issued and outstanding shares of common stock,have entered into voting support agreements with AngloGold Ashanti,pursuant to which they have agreed,among other things,to vote their shares of Augusta Gold common stock in favour of adopting the Merger Agreement and the Transaction,the statement concluded.
AngloGold Ashanti engaged RBC Capital Markets as its financial adviser,Womble Bond Dickison(US) LLP and Cravath,Swaine & Moore LLP as its U.S. legal counsel and Stikeman Elliot LLP as its Canadian legal counsel in connection with the transaction.