North American gold exploration and development company Corvus Gold Inc. (KOR:TSX; KOR:NASDAQ) today announced that "it has received an unsolicited, non-binding proposal from AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) for the acquisition of Corvus Gold Inc."
The firm advised that under the term of the buyout offer, AngloGold Ashanti agrees to acquire all issued and outstanding Corvus common shares and will pay Corvus Gold shareholders CA$4.00 in cash for each respective share owned.
Corvus Gold stated in the news release that its management team and its Board of Directors are evaluating the proposal terms in line with their fiduciary responsibilities and efforts to maximize shareholder value. The company indicated that pending the completion of the review it is not making any further comments at this time and added that stockholders do not need to take any specific actions at present.
The company indicated that it currently has two primary new gold discovery projects that are both located in the state of Nevada. The first is its 100%-controlled North Bullfrog Project, which is comprised of several private mineral leases of patented federal mining claims along with 1,134 federal unpatented mining claims. The property encompasses around 90.5 sq. km in southern Nevada. The firm's second major project is its wholly owned Mother Lode Project that covers approximately 36.5 sq. km and includes 45 federal unpatented mining claims.
Corvus Gold Inc. is a North American gold exploration and development company based in Vancouver, B.C. The firm concentrates its efforts on two gold-silver mining projects in Nevada. The company noted that it also has a controlling interest in several other gold, silver and copper projects in North America.
AngloGold Ashanti Ltd. is a gold mining company with a market cap of US$8 billion headquartered in Johannesburg, South Africa. The firm is primarily focused on gold production with operations in 10 countries throughout Africa and the Americas and in Australia.
Corvus Gold began the day with a market cap of around $327.6 million with approximately 127.0 million shares outstanding. KOR U.S.-ADR shares opened greater than 16% higher today at $3.00 (+$0.42, +16.28%) over yesterday's $2.58 closing price. The stock has traded today between $2.91 and $3.21 per share and is currently trading at $3.13 (+$0.55, +21.32%).
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