AUGUSTA GOLD STOCKHOLDERS APPROVE ACQUISITION BY ANGLOGOLD ASHANTI

On October 21, 2025, Augusta Gold announced that its stockholders have approved the previously announced acquisition by a subsidiary of AngloGold Ashanti plc. At a special meeting, the merger resolution was approved by 99.37% of the votes cast, representing 69.44% of the total outstanding shares. The acquisition is expected to close on or about October 23, 2025, subject to customary closing conditions. Upon completion, Augusta Gold will be delisted from the Toronto Stock Exchange (TSX) and will cease trading on the OTCQB Venture Market.

The shareholder approval is the final major condition for the acquisition by AngloGold Ashanti to close. This news is a positive confirmation but is entirely expected and procedural. The material event was the initial announcement of the all-cash offer of C$1.70 per share on July 16, 2025.

A review of the company's situation leading up to the offer reveals the deal was a necessary exit for shareholders. - Financial Distress: Financial statements from March and August 2025 showed a company in severe financial distress. As of June 30, 2025, Augusta had only C$1.0 million in cash against C$38.5 million in current liabilities, resulting in a working capital deficit of C$37.4 million. The company was being kept afloat by continuous loans from a related party, Augusta Investments Inc., with a note payable of nearly C$35.0 million. - Path to Production Uncertainty: On June 16, 2025, the company announced a non-binding letter of interest from the U.S. EXIM Bank for a potential US$50 million loan to build its Reward Project. While a positive step, this was far from a complete financing package and was subject to due diligence. The company still faced a significant funding gap and the immense execution risk of constructing a mine. - The Buyout as a Lifeline: The C$1.70 per share cash offer announced on July 16, 2025, was a game-changer. It represented a significant premium (28% to the prior day's close) and, more importantly, provided immediate liquidity and certainty. It eliminated all future financing, development, commodity price, and execution risks for shareholders. The stock price immediately gapped up to the offer price and has traded in a tight arbitrage range since, signaling high market confidence in the deal's completion.

The shareholder approval was a foregone conclusion, particularly since directors, officers, and Augusta Investments Inc., representing 31.5% of shares, had already entered into voting support agreements. Today's news simply formalizes the inevitable, removes the last sliver of deal risk, and solidifies the C$1.70 cash payout for shareholders within days. Therefore, the impact is routine and confirms the market's existing expectations.

Augusta Gold Corp. is a US-based gold exploration and development company focused on its projects in the Bullfrog mining district in Nevada. Its flagship asset is the Reward Project, which is described as a fully permitted, construction-ready, open-pit, heap-leach gold project. The company also holds the adjacent Bullfrog gold project. The stated plan was to advance the Reward Project to production, but the company lacked the financial resources to execute this strategy independently.