Augusta Gold Corp announces that it has entered into a definitive merger agreement with AngloGold Ashanti and certain of its affiliates, pursuant to which AngloGold Ashanti will acquire. The Price implies an enterprise value of approximately C$197 million, comprised of a fully-diluted equity value for the Company of approximately C$152 million and repayment of certain stockholder loans that amounted to approximately C$45 million at March 31, 2025.
The Price represents a premium of approximately 28% to the closing price of the Company’s common stock on the Toronto Stock Exchange [TXT], the last trading day prior to the announcement of the Transaction and approximately 37% to the volume-weighted average share price on the TSX over the 20 trading days prior to such date.
Offer has minimal conditions, will be funded by AngloGold Ashanti’s existing cash on hand, and is not subject to AngloGold Ashanti stockholder approval. The Transaction removes future dilution, commodity price, development, and execution risk. AngloGold Ashanti is a highly credible and capable counterparty with an established track record of successful M&A.
Richard Warke, Executive Chairman of Augusta Gold, commented, “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.”
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