South Africa’s AngloGold Ashanti (NYSE: AU) (JSE: ANG) is expanding its footprint in Nevada with the acquisition of Coeur Mining’s (NYSE: CDE) subsidiary for US$150 million cash.
The unit, Crown Sterling Inc, holds properties in Nevada immediately south of AngloGold’s assets and they are estimated to hold 914,000 ounces of gold.
The bullion producer has agreed to pay Coeur an extra US$50 million if further exploration results in a mineral resource greater than 3.5 million ounces.
The move increases AngloGold’s foothold in the Beatty district, in south-central Nevada, where it bought all projects held by Corvus Gold after the recent US$370 million acquisition of the Canadian junior.
“The addition of these properties consolidates our ownership position in one of North America’s most promising new gold districts,” said AngloGold Ashanti chief executive officer Alberto Calderon.
Coeur Mining CEO Mitchell Krebs noted in a separate statement that AngloGold had consolidated a significant portion of the Beatty district, becoming “the logical operator of a future standalone mining operation” in the area.
Prior to this acquisition and pending permits and studies already underway, AngloGold had anticipated first production in the Beatty district by 2025 and said those assets would produce about 300,000 ounces of gold a year, with an all in sustaining cost of less than US$1,000 per ounce, by the end of the decade.
The transaction is expected to be completed by the end of 2022.
This article originally appeared on www.Mining.com.
April 15, 2024
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