Vancouver-based Augusta Gold has secured shareholder approval for its planned acquisition by AngloGold Ashanti.

At a special meeting held on October 20, stockholders voted in favour of the resolution approving the merger, which would consolidate the companies' position in Nevada’s Beatty gold district.

According to Augusta, 59.9-million shares, representing about 69.7% of issued and outstanding common stock, were voted at the meeting. The merger resolution was approved by about 69.4% of total shares as of the record date and 99.37% of votes cast, after excluding related-party votes in accordance with Canadian securities regulations.

Closing of the merger remains subject to customary conditions, and the transaction is expected to be completed this week. Following completion, Augusta’s common shares will be delisted from the TSX and will cease trading on the OTCQB, with the company also applying to cease to be a reporting issuer in Canada.

Augusta has further indicated that it will file with the US Securities and Exchange Commission to terminate its US reporting obligations once the merger is finalised.

AngloGold Ashanti will acquire all issued and outstanding shares of Augusta Gold for C$1.70 a share, valuing the company at about C$152-million. AngloGold will also provide funding for the repayment of certain stockholder loans totalling $32.6-million.

The deal will give AngloGold ownership of Augusta’s Reward and Bullfrog projects, both located near Beatty, Nevada, about 190 km north-west of Las Vegas. The permitted, feasibility-stage Reward project and the Bullfrog deposit lie adjacent to AngloGold’s existing claims in the district, which the company has identified as one of its key US growth hubs.

“This acquisition reinforces the value we see in one of North America’s most prolific gold districts,” said AngloGold CEO Alberto Calderon when the transaction was announced in July. “We believe that 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.”

Augusta Gold, led by a management team with a history of developing and financing mining projects, said it expects the merger to create long-term value for stakeholders by combining its Nevada assets with AngloGold’s established regional footprint.