AngloGold Ashanti strengthens its position in North America's gold district with Augusta Gold acquisition

AngloGold Ashanti plans to acquire all of Canada-based gold exploration company Augusta Gold’s shares at a price of C$1.70 per share, or about R1.99 billion, in cash.

The price, which implies an equity value for Augusta Gold of about C$152 million, or about $111m, represents a premium of about 28% to the closing price of Augusta Gold's shares on the Toronto Stock Exchange on July 15, 2025, the day prior to the announcement of the deal.

"We believe 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," said AngloGold Ashanti’s CEO Alberto Calderon in a statement.

AngloGold Ashanti’s share price slipped 2.9% on the JSE to R834.11 on late Wednesday afternoon, but the share price still represents a strong 56.5% rally compared with the R531.17 it traded at a year ago.

Additionally, the JSE, Australia, Ghana, and New York-listed, South Africa-based global mining group will fund the repayment of certain stockholder loans in Augusta Gold, which amounted to about $32.6m at March 31, 2025.

AngloGold Ashanti said that the deal will consolidate its footprint in the Beatty District by acquiring Reward, a permitted, feasibility-stage project, the Bullfrog deposit, and the tenements surrounding each of these properties.

Calderon said the acquired properties are adjacent to AngloGold Ashanti's claims in the Beatty District and will provide additional mineral resources to AngloGold Ashanti's inventory.

"This acquisition reinforces the value we see in one of North America's most prolific gold districts," said Calderon.

The deal is expected to close in the fourth quarter of this year, subject to customary closing conditions, including Augusta Gold shareholder approval at a stockholder meeting.

After the transaction, Augusta Gold will become an indirect wholly-owned subsidiary of AngloGold Ashanti, and Augusta Gold's shares will be delisted from the Toronto Stock Exchange, or no longer traded on any over-the-counter market.

Prior to the Augusta Gold Board approval of the deal, the audit committee had reviewed and recommended that the board approve the transaction.

In the past two years, AngloGold Ashanti completed the acquisition of Egypt, Africa, and Australia gold mining and exploration company Centamin in November 2024, and it acquired Vancouver-based Corvus Gold in January 2022. In May this year, two gold projects were sold in Côte d’Ivoire, while a project was acquired in Guinea.

Augusta Gold’s Reward and Bullfrog projects are located in the Bullfrog mining district about 178.6 kilometres north-west of Las Vegas, Nevada, and just outside of Beatty, Nevada.

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