AngloGold to buy Coeur Mining’s projects in Nevada for US$150 million

AngloGold to buy Coeur Mining's projects in Nevada for $150 millionCoeur Mining has operations in Nevada, including the Rochester open pit, heap leach silver-gold mine, pictured here. (Image courtesy of Coeur Mining.)

South Africa’s AngloGold Ashanti (NYSE: AU; JSE: ANG) is expanding its footprint in Nevada, US, 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 oz. 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 J. 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 oz. of gold a year, with an all in sustaining cost of less than US$1,000 per oz., by the end of the decade.

The transaction is expected to be completed by the end of 2022.

AngloGold shares were trading at US$12.75 as of mid-morning on Monday. Its shares have traded in a 52-week window of US$12.44 and US$26.96. It has a market cap of US$5.3 billion.

Coeur Mining shares were trading at US$3.05, in a 52-week window of US$2.54 and US$7.64. It has a market cap of of US$856 million.  

Print

Be the first to comment on "AngloGold to buy Coeur Mining’s projects in Nevada for US$150 million"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close