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- Regis Resources (RRL) has been given the green light to acquire a 30 per cent interest in the Tropicana Gold Joint Venture from fellow ASX-lister IGO (IGO)
- Tropicana is situated on the western edge of the Great Victoria Desert and is 70 per cent owned by ASX-listed AngloGold Ashanti (AGG)
- Earlier this year, Regis agreed to acquire IGO’s stake for $903 million
- Now approved by the Minister for Mines and Petroleum, the companies expect the transfer will take place by May 31
- IGO shares are marginally higher, up 0.26 per cent and trading at $7.68 each
- Meanwhile, Regis shares have dipped 2.06 per cent to trade at $2.06
Regis Resources (RRL) has been given the green light to acquire a 30 per cent interest in the Tropicana Gold Joint Venture from fellow ASX-lister IGO (IGO).
Tropicana is situated on the western edge of the Great Victoria Desert and is 70 per cent owned by ASX-listed AngloGold Ashanti (AGG).
Earlier this year, IGO and Regis entered an agreement, effective from March 31, for a cash consideration of $903 million.
Subsequently, the Minister for Mines and Petroleum has approved the transfer of Tropicana, as well as other tenements, from IGO to Regis.
RRL Managing Director and CEO Jim Beyer commented on the upcoming transfer.
“We are very pleased that the Minister’s approval for the tenement transfer has been received and, now that the transaction is unconditional, we look forward to completing the deal,” he said.
“As I’ve said previously, this acquisition provides significant strategic benefits to Regis and, when combined with our existing assets, provides a larger-scale, longer-term financial and operating platform to pursue internal and external growth opportunities.”
With all conditions precedent now satisfied, the companies expect the acquisition will take place towards the end of May.
On the market this afternoon, IGO shares are up 0.26 per cent, trading at $7.68 each.
Meanwhile, Regis Resources shares have dipped 2.06 per cent, trading at $2.62 at 2:13 pm AEST.
