Augusta Gold Corp. Reports $3.52 Million Net Loss, Announces Merger with AngloGold Ashanti

Augusta Gold Corp. reported a net loss of $3.52 million for the six months ending June 30, 2025, compared to a loss of $3.12 million for the same period in 2024. The company's total operating expenses decreased to $2.05 million from $2.51 million year-over-year, primarily due to reduced exploration and evaluation expenses, which fell from $1.23 million to $839,182. General and administrative expenses also saw a decline, dropping from $1.13 million to $1.03 million. The company did not generate any revenue during this period, consistent with its status as an exploration-stage mining company.

In terms of financial position, Augusta Gold's total assets increased slightly to $61.38 million as of June 30, 2025, from $60.94 million at the end of 2024. Current assets rose significantly, primarily due to an increase in cash reserves, which grew to $1.02 million from $315,001. However, total liabilities also increased to $40.02 million, up from $36.26 million, largely driven by higher accounts payable and accrued liabilities. The company's accumulated deficit widened to $43.34 million from $39.82 million.

Strategically, Augusta Gold is focused on advancing its Bullfrog and Reward gold projects in Nevada. The company has not yet made a development decision on the Reward Gold Project, which has established mineral reserves but remains in the exploration stage. The company is actively seeking to acquire additional mineral properties with exploration potential. Notably, on July 15, 2025, Augusta Gold announced a merger agreement with AngloGold Ashanti, which will see the latter acquire all outstanding shares of Augusta Gold at a price of C$1.70 per share, implying an enterprise value of approximately C$197 million.

Operationally, Augusta Gold's exploration activities continue, with a focus on the Bullfrog and Reward projects. The company has maintained its employee headcount at 85,929,753 shares of common stock outstanding. The company’s liquidity position improved, with cash and cash equivalents totaling $1.02 million as of June 30, 2025, compared to $613,000 a year earlier. However, the company reported a working capital deficiency of approximately $37 million, raising concerns about its ability to continue as a going concern without additional financing.

Looking ahead, Augusta Gold anticipates that the merger with AngloGold Ashanti will provide the necessary capital and resources to advance its projects. The transaction is expected to close in the fourth quarter of 2025, subject to shareholder approval and customary closing conditions. The company plans to continue its exploration and evaluation activities while managing its financial obligations and seeking further strategic opportunities in the mining sector.