AngloGold Ashanti to expand in Nevada with Augusta Gold acquisition
Thu July 17 2025
AngloGold Ashanti has agreed to acquire Augusta Gold in a deal worth around C$152m ($110.5m), with an aim to consolidate in the Beatty District, Nevada, US. Augusta Gold is a Canada-based exploration and development company. The publicly listed company is engaged in developing its Reward and Bullfrog gold projects in Nevada.
The acquisition, translates to C$1.7 ($1.24) per share, reflecting a 28% premium over Augusta Gold’s closing price on 15 July 2025. It is also a 37% premium over the 20-day volume-weighted average share price prior to the announcement.
This transaction will see AngloGold Ashanti integrate the Reward project and Bullfrog deposit into its existing claims in the Beatty District, enhancing its mineral resource inventory. AngloGold Ashanti CEO Alberto Calderon said: “This acquisition reinforces the value we see in one of North America’s most prolific gold districts.
“We believe that 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 – with more flexibility, greater access, better infrastructure sharing, and cohesive engagement with all stakeholders.” Completion of the acquisition is set for Q4 2025, pending customary approvals from Augusta Gold shareholders and other conditions.
Upon closing, Augusta Gold will operate as an indirect wholly-owned subsidiary of AngloGold Ashanti, with its shares ceasing public trading. The board of directors at Augusta Gold has unanimously endorsed the merger agreement, urging shareholders to approve it.
Support for the transaction is bolstered by voting agreements from key stakeholders holding approximately 31.5% of Augusta Gold’s stock, including certain directors and executive officers. Augusta Gold executive chairman Richard Warke said: “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.”
Last month, Augusta Gold received a letter of interest from the Export-Import Bank of the United States (EXIM) for potential financing support of up to $50m for the Reward Project under the “Make More in America” initiative.
This non-binding interest includes terms for a direct loan with a possible 10-year repayment period and aligns with EXIM’s objectives of job creation and export promotion.
Source: https://www.nsenergybusiness.com