AngloGold Ashanti in $58.5M deal to double Thesis stake

AngloGold Ashanti (NYSE: AU) is investing $58.5 million (US$42 million) to double its stake in Thesis Gold & Silver (TSXV: TAU; US-OTC: THSGF) and help the Vancouver-based developer advance the Lawyers-Ranch project in British Columbia.

AngloGold will buy 8.34 million common shares for $28.5 million, along with $30 million of flow-through shares, Thesis said Monday. The investment will lift AngloGold’s interest in Thesis to 9.7% from about 5%, following an initial $38.7 million investment in February. The deal is expected to close around Aug. 27, subject to TSX Venture Exchange approval.

The financing comes as Thesis prepares a feasibility study for Lawyers-Ranch – due next year -- while carrying out exploration and permitting work. Having begun the environmental assessment process in late 2025, the company expects a decision from provincial authorities in 2029.

AngloGold’s investment is “a strong endorsement of Lawyers-Ranch’s scale, exploration potential and development outlook,” National Bank Financial mining analyst Alex Terentiew said Monday in a note. “The financing significantly improves funding visibility for ongoing exploration and technical work ahead of the expected 2027 feasibility study, while strengthening Thesis's relationship with a globally significant gold producer.”

Eligible expenditures

Proceeds from the flow-through portion will fund eligible Canadian exploration expenditures at Lawyers-Ranch, while the hard-dollar proceeds will be used for working capital and general corporate purposes, including technical studies underway on the project, Thesis said.

Located about 930 km north of Vancouver, Lawyers-Ranch is Thesis’ sole project, covering 495 sq. km in the Toodoggone mining district. The land package hosts the Lawyers and Ranch areas, which contain multiple gold-silver deposits as well as exploration targets.

A 2025 prefeasibility study (PFS) outlined a staged open-pit and underground operation with a 15-year mine life.

Lawyers-Ranch holds 117.5 million measured and indicated tonnes grading 0.88 gram gold per tonne and 25.9 grams silver for contained metal of about 3.3 million oz. gold and 97.9 million oz. silver, according to the study. Inferred resources were pegged at 16.2 million tonnes grading 1.05 grams gold and 14.7 grams silver for contained metal of 547,000 oz. gold and 7.7 million oz. silver.

Truck and shovel

At base-case prices of US$2,900 ($4,031) per oz. gold and US$35 per oz. silver, the PFS estimated an post-tax net present value – at a 5% discount rate – of $2.37 billion and an post-tax internal rate of return of 54.4%. Initial capital was estimated at $736.2 million, with a projected payback period of 1.1 years and average all-in sustaining costs of US$1,185 per gold-equivalent ounce.

Conventional truck-and-shovel open-pit mining is planned for the Lawyers and Ranch areas, as well as underground mining at the Cliff Creek and Dukes Ridge deposits at Lawyers. A centralized processing facility is planned between the open pits at Lawyers.

Thesis is also conducting exploration across the broader property. In March, crews identified two porphyry targets at Ranch and Ranch East, with the latter located about 15 km east of the Ranch resource area.

Shares of Thesis rose 1.4% to $3.68 Monday morning in Toronto, valuing the company at about $1 billion. The stock has traded between $1 and $3.98 in the past year.