Augusta Gold To Be Acquired By AngloGold Ashanti For $1.70 A Share

M&A activity continues to heat up within the mining sector, with Augusta Gold (TSX: G) this morning indicating they have entered into a definitive agreement to be acquired by AngloGold Ashanti plc.

The transaction will see Augusta acquired for an enterprise value of approximately $197 million, which includes a fully-diluted equity value of $152 million, as well as $45 million in debt. Shareholders are set to receive $1.70 per share in the form of cash, which translates to a premium of 28% based on yesterday’s closing price.

The offer is said to have minimal conditions, with funding to come from cash currently held on hand by AngloGold. The transaction is currently expected to close in the fourth quarter of 2025, subject to the approval of Augusta shareholders.

For AngloGold, the transaction will enable the company to consolidate their footprint in the Beatty District of Nevada with the acquisition of Augusta’s Reward project, which is a permitted, feasibility stage project. The project is found adjacent to certain claims held by AngloGold with the district, and adds further resources to their inventory.

“The offer from AngloGold Ashanti represents a compelling offer to stockholders, locking in a meaningful premium and immediate liquidity as compared to waiting for the Reward Project to commence construction and then produce by mid-2027. Constructing the Reward Project would require additional dilution to raise the required equity, substantial time for construction, and time to get the mine operating at capacity. Taking the foregoing factors into consideration, I believe that the offer from AngloGold Ashanti represents a clearly superior path forward for stockholders,” commented Richard Warke, CEO of Augusta.

Augusta Gold last traded at $1.33 on the TSX.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Gold/Silver: People Can Still Lose Money In This Bull Market!? | Rick Rule

He Said $300 Silver!? | Peter Krauth

Dollar Will Collapse, Gold and Silver Are the Only Safe Havens | Jim Rogers

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Augusta Gold Drops US$45 Million On “Shovel Ready” Oxide Gold Project In Nevada

Augusta Gold (TSX: G) this morning announced it’ll be opening up its pocketbook to acquire...

Friday, April 22, 2022, 09:05:28 AM

Aura Minerals Purchases AngloGold’s Mineracao Serra Grande Mine For $76 Million

Aura Minerals (TSX: ORA) is set to add another operating asset to its portfolio. The...

Monday, June 2, 2025, 08:27:52 AM

Corvus Gold Announces Shareholder Approval Of Acquisition By AngloGold Ashanti

The planned acquisition of Corvus Gold Inc. (TSX: KOR) by AngloGold Ashanti (NYSE: AU) is taking...

Friday, January 7, 2022, 10:08:00 AM

Augusta Gold Obtains Letter Of Interest From EXIM For Reward Project

Augusta Gold (TSX: G) is one step closer to financing the development of the Reward...

Monday, June 16, 2025, 08:57:04 AM

Augusta Gold Reports 880,000 Ounces Of Gold In Maiden Resource Estimate At Bullfrog

Augusta Gold Corp. (TSX: G) today released the results of its maiden mineral resource estimate...

Wednesday, July 14, 2021, 10:52:00 AM