13 Jul - 8 min read

AngloGold Ashanti Submits Proposal to Acquire Corvus

AngloGold Ashanti Submits Proposal to Acquire Corvus

AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti”, “AGA” or “Company”)


NEWS RELEASE

AngloGold Ashanti Submits Proposal to Acquire Corvus Gold

AngloGold Ashanti Limited (“AngloGold Ashanti” or the “Company”) is pleased to announce that a
non-binding proposal (the “Proposal”) has been submitted to the Board of Directors of Corvus Gold
Inc. (“Corvus”) under which its direct wholly owned subsidiary, AngloGold Ashanti Holdings plc
(“AGAH”), would be willing to acquire for cash all of the issued and outstanding common shares of
Corvus (“Corvus share(s)”) which the Company does not already beneficially own (the “Proposed
Transaction”).

AngloGold Ashanti currently holds a 19.5% indirect interest in Corvus, which is incorporated in British
Columbia, Canada and listed on the Toronto Stock Exchange (“TSX”) and NASDAQ. Corvus owns North
Bullfrog, Mother Lode and other exploration assets located in southern Nevada’s Beatty District, which
are in close proximity to, or contiguous with, AngloGold Ashanti’s exploration assets of Silicon,
Transvaal and Rhyolite.

Christine Ramon, AngloGold Ashanti’s Interim Chief Executive Officer, said: “The Proposal is fully
aligned to our strategy of growing Ore Reserve, building low-cost production and generating
sustainable returns. We have a unique opportunity to combine Corvus’ assets with our own – in the
world’s top-ranked mining jurisdiction – to create a meaningful new production base for AngloGold
Ashanti in the medium and longer term.”

The combination of Corvus’ and AngloGold Ashanti’s Nevada assets further consolidates one of the
largest new gold districts in Nevada and provides the opportunity for AngloGold Ashanti to establish,
in the medium and longer term, a meaningful, low-cost, long-life production base in a premier mining
jurisdiction. Consolidation of the Beatty District has the potential for significant synergies from
economies of scale and integrated infrastructure including processing facilities. The combined asset
base allows for streamlined engagement with federal, state and local stakeholders to advance and
achieve shared sustainability goals and other district benefits, such as opportunities to design projects
incorporating renewable energy, as well as develop conservation and other local projects in
conjunction with the Beatty community.

AngloGold Ashanti has a long track record of operating gold mines in the United States, where it
operated the Cripple Creek & Victor mine in Colorado from acquisition in 1999 through to its sale to
Newmont Corporation in 2015 and the Jerritt Canyon Gold mine in Nevada from acquisition in 1999
through to its sale in 2003 and where it is still conducting closure monitoring activities at the
Big Springs mine in Nevada that was closed in 1994. The Company has a North American regional office
in Denver, Colorado, from where it manages its U.S. business interests as well as a global greenfield
exploration portfolio, including its portfolio in the United States.

The Proposal follows the announcement by Corvus on 6 May 2021 that it had entered into a
US$20 million unsecured loan and guaranty agreement (the “Loan Agreement”) with AngloGold
Ashanti North America Inc., an indirect wholly owned subsidiary of AngloGold Ashanti. As a result of
the Loan Agreement, AngloGold Ashanti was granted an initial exclusivity period of 90 days, during
which the Company was allowed to conduct a detailed due diligence exercise on Corvus and its key
assets. Under the terms of the Loan Agreement, the initial exclusivity period would be extended by a
further 30 days in the event AngloGold Ashanti submits a letter of intent or proposal.

Proposal

AngloGold Ashanti proposes that AGAH will acquire all of the issued and outstanding Corvus shares
(other than the Corvus shares currently beneficially owned by the Company) in exchange for
consideration of C$4.00 per Corvus share (the “Offer Price”), payable in cash. The Offer Price
represents a premium of approximately 55% to the undisturbed price of C$2.58 per Corvus share on
5 May 2021, prior to the announcement of the Loan Agreement, a premium of approximately 23% to
the closing price per Corvus share prior to the submission of the Proposal and a premium of
approximately 20% to the last 10-day volume weighted average price of Corvus shares on the TSX.
Based upon the Offer Price, AngloGold Ashanti estimates that the total cash consideration payable to
shareholders (other than AngloGold Ashanti) for the Proposed Transaction is approximately US$370
million (inclusive of payments in respect of Corvus’ outstanding options).

AngloGold Ashanti is required under applicable laws and regulations to publicly file the Proposal to
Corvus in the United States. The Company is focused on working closely with Corvus’ Board of
Directors and management in a friendly manner to agree the terms of, and implement, the Proposed
Transaction.

Following the submission of the Proposal, AngloGold Ashanti expects to engage with Corvus’ Board of
Directors regarding the Proposed Transaction and in parallel complete certain limited confirmatory
due diligence relating to Corvus and its assets. The Company has completed all technical, legal and
financial due diligence that would impact the value of the Proposal.

AngloGold Ashanti expects to structure the Proposed Transaction as a plan of arrangement in
accordance with Canadian corporate law. Following the support and recommendation of the Board of
Corvus, this will require that shareholders of Corvus vote in favour of the Proposed Transaction. In
order to become effective, the plan of arrangement will also be subject to Canadian court approval.

Shareholders will be kept updated in this regard.

Required Early Warning Report and Other Regulatory Information

As of the date hereof, AngloGold Ashanti, and its affiliates and associates, have beneficial ownership
and control of 24,774,949 Corvus shares, representing approximately 19.5% of the issued and
outstanding Corvus shares. The head office of AngloGold Ashanti is 76 Rahima Moosa Street,
Newtown, Johannesburg, 2001, South Africa. The head office of Corvus is 1750 – 700 West Pender
Street, Vancouver, British Columbia, Canada. An early warning report will be filed by AngloGold
Ashanti with applicable Canadian securities regulatory authorities and will be available on Corvus’
SEDAR profile at www.sedar.com or may be obtained from the Company by contacting AngloGold
Ashanti Investor Relations at investors@anglogoldashanti.com. In addition, a statement on Schedule
13D will also be filed with the U.S. Securities and Exchange Commission and will be available on Corvus’
EDGAR profile at www.sec.gov.


ENDS

Johannesburg
13 July 2021

JSE Sponsor
The Standard Bank of South Africa Limited

Financial Adviser
RBC Capital Markets

Canadian Legal Counsel
Stikeman Elliott LLP

U.S. Legal Counsel
Cravath, Swaine & Moore LLP and Hogan Lovells US LLP


 Contacts
 Media
 Julie Bain                 +27 66 364 0038                                   jbain@anglogoldashanti.com
 Chris Nthite               +27 83 301 2481                                   cnthite@anglogoldashanti.com

 Investors
 Yatish Chowthee            +27 78 364 2080                                   yrchowthee@anglogoldashanti.com
 Fundisa Mgidi              +27 82 821 5322                                   fmgidi@anglogoldashanti.com


Certain statements contained in this document, other than statements of historical fact, including, without limitation,
those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production,
total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity,
productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the
aggregate, including the achievement of project milestones, commencement and completion of commercial
operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions,
dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital
expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or
environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations,
economic performance and financial condition. These forward-looking statements or forecasts involve known and
unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or
achievements to differ materially from the anticipated results, performance or achievements expressed or implied
in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will
prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in economic, social and political and market conditions,
the success of business and operating initiatives, changes in the regulatory environment and other government
actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending
or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics
(including the COVID-19 pandemic), and other business and operational risks and other factors, including mining
accidents. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the
year ended 31 December 2020, filed with the United States Securities and Exchange Commission (SEC). These
factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ
materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could
also have material adverse effects on future results. Consequently, readers are cautioned not to place undue
reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent
written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are
qualified by the cautionary statements herein.

The information contained in this announcement has not been reviewed or reported on by AngloGold Ashanti’s
external auditors.

Non-GAAP financial measures

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilizes certain Non-
GAAP performance measures and ratios in managing its business. Non-GAAP financial measures should be
viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or
any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these
measures may not be comparable to similarly titled measures other companies may use.

Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN: ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU

Website: www.anglogoldashanti.com

Date: 13-07-2021 04:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Anglogold Ashanti (JSE:ANG) when you join Listcorp.