AngloGold Ashanti to acquire Coeur Mining's Nevada gold projects for $150 million
South Africa-listed gold miner AngloGold Ashanti has agreed to pay $150 million in cash to acquire a subsidiary of Coeur Mining with mining concessions in Nevada adjacent to its own, the companies said.
The properties to be acquired in the transaction include Coeur’s C-Horst, SNA, Secret Pass and Daisy ore bodies, as well as the decommissioned Sterling Mine and all tenements that surround these properties.
“This acquisition further enhances the value proposition we are building in the Beatty District,” said AngloGold Ashanti CEO Alberto Calderon. “The addition of these properties consolidates our ownership position in one of North America’s most promising new gold districts, and gives us the ability to develop it in a way that will realize its full potential for the benefit of all stakeholders.
The unit, Coeur Sterling Inc, holds properties in Nevada estimated to hold 914,000 ounces of gold. AngloGold Ashanti agreed to pay Coeur an extra $50 million if further exploration results in a mineral resource greater than 3.5 million ounces.
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 ounces of gold a year, with an all in sustaining cost of less than $1,000 per ounce, by the end of the decade, Reuters reported.
The transaction is expected to be completed by the end of 2022.