Regis completes Tropicana buy
PERTH (miningweekly.com) – Gold miner Regis Resources has completed its A$903-million acquisition of a 30% interest in the Tropicana gold project, in Western Australia, from fellow listed Independence Group (IGO).
The two companies struck a sales agreement in April of this year, after IGO completed a strategic review of the asset, considering a number of options to realise full value for its share in the gold joint venture.
“We are very pleased that the acquisition of a 30% interest in Tropicana, one of Australia’s five largest producing gold mines, was completed successfully today,” said Regis MD and CEO Jim Beyer.
“This acquisition represents a step change in growth for Regis, which also diversifies Regis’ existing production base with a significant interest in a low cost, high margin gold asset operated by AngloGold Ashanti, a gold miner with a successful track record of developing and operating Tropicana and other large underground mines.”
IGO told shareholders on Monday that the divestment of Tropicana would allow the company to pursue its strategic focus on commodities critical to enabling clean energy, and would enable the company to complete its transaction with Tianqui Lithium Corporation without the need to draw on debt facilities, while retaining a strong balance sheet with proforma net cash of A$300-million.
“We are delighted to have successfully divested, and now settled, the transaction with Regis to divest our stake in the Tropicana gold mine. Tropicana has been a wonderful asset for IGO, however, our strategic focus on clean energy metals and pending lithium transaction with Tianqi meant a divestment at this juncture was the best outcome for our shareholders," said IGO MD and CEO Peter Bradford.
Following the necessary adjustments, the consideration paid to IGO amounted to A$889-million.
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