Congrats if you listened... Augusta Gold (TSX:G) just got taken out for C$1.70 per share

Exactly one month ago, I wrote about Augusta Gold (TSX: G, OTCQB: AUGG) when it was trading at $1.00. My headline predicted a buyout — and today, it’s official.

Just his morning, Augusta announced it’s being acquired by AngloGold Ashanti for C$1.70 per share, a 70% gain from when I sent out my note and a 28% premium to yesterday’s close.

Congrats to anyone who acted on that call.

To be honest, I would have liked to see a much higher takeover price. In my June article, I valued Augusta at ~USD $7.97/share (~CAD $10.89) based on its fully permitted Reward project and district-scale Bullfrog asset. Even a conservative 0.5x NAV multiple suggested a fair value closer to $3.99.

That said, I’m happy to take the cash on this one — and there’s still a chance of a better offer materializing. Augusta sits right in the middle of AngloGold’s billion-dollar Beatty District land package. For Barrick, Kinross, or any other major in Nevada, this is a strategic asset that might be too important to let slip away.

The deal isn’t closed yet. And as we’ve seen before in this sector, M&A stories don’t always end with the first bid.

For now though, this is a clear win — and a reminder of what happens when the market finally wakes up to a mispriced asset.

If you missed Augusta at $1.00, don’t miss my next call.

Stay tuned.

DISCLOSURE

The author did not receive any compensation for publishing The author owns shares of Augusta Gold and may choose to buy or sell at any time without notice. While the author has made reasonable efforts to ensure the accuracy and reliability of the content, readers should conduct their own research and analysis and seek independent financial advice before making any investment decisions related to the small cap company mentioned.