Augusta shareholders approve AngloGold takeover
me-metals: Augusta Gold (TSX: G) has received shareholder approval for its planned takeover by AngloGold Ashanti (JSE: ANG; NYSE: AU), following a special meeting that took place earlier this week.
According to me-metals cited from mining.com, According to Augusta, nearly 70% of its outstanding shares were voted at the meeting, of which over 99.3% voted in favour of the merger resolution. With this approval, the transaction is expected to close on or around Oct. 23, subject to certain conditions.
Consolidating Beatty claims
In mid-July, AngloGold entered an agreement to acquire Vancouver-based Augusta in a C$152 million ($108.7 million) all-cash deal, as it looks to consolidate landholding within Nevada’s Beatty gold district. Augusta’s key assets are the Reward and Bullfrog gold projects, both located next to AngloGold’s claims.
The C$1.70-a-share price it paid to Augusta shareholders represented a 28% premium at the time of announcement. Currently, the stock is trading at C$1.69 apiece, giving Augusta a market capitalization of C$145.2 million ($103.8 million).
“This acquisition reinforces the value we see in one of North America’s most prolific gold districts,” AngloGold CEO Alberto Calderon said in a press release. “Securing these properties will not only solidify our leading position in the most important new gold district in the US, but will also improve our ability to develop the region under an integrated plan.”
AngloGold Ashanti’s Nevada projects include Arthur, which has an inferred mineral resource of 12.9 million oz., and North Bullfrog, which is expected to produce an average of 76,000 oz. gold annually over the mine’s anticipated 11 years.
BMO Capital Markets mining analyst Raj Ray said the acquisition of Augusta “gives the company some synergies” for these two projects.
source: mining.com
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