AngloGold Ashanti will acquire Centamin, an Egypt-focused gold mining company, in a $2.5 billion stock and cash deal. This acquisition will expand AngloGold Ashanti’s operations in Africa, a region rich in gold resources, Reuters reported.

Centamin shares value increased by about 24% to reach 148.10 pence in early trade, their highest level since October 2020. Shares in Centamin’s London-listed peer Hochschild (HOCM.L), opening a new tab rose about 4%.

Under the terms of the deal, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share and $0.125 in cash.

Following the completion of the deal, AngloGold Ashanti’s shareholders will hold approximately 83.6% of the company’s enlarged issued share capital, while Centamin’s shareholders will own about 16.4%.

AngloGold Ashanti Chair Jochen Tilk described the deal as “highly compelling”, adding that the acquisition offers “enormous geological potential” that the company can develop.