IGO (ASX:IGO) accepts $903m offer for stake in Tropicana Gold

Company News

by Michael Luu

Mining and exploration company IGO (AX:IGO) has accepted a $903 million bid from Gold miner Regis Resources (ASX:RRL) for a 30-per cent stake in the Tropicana Gold Project.

The takeover is conditional and subject to approval from AngloGold Ashanti (ASX:AGG). The project’s joint owner has till March 31 to decide whether to object to the deal and acquire the same stake on the same terms and conditions agreed with Regis.

Regis will raise $650 million and access its $300 million loan facility to fund the purchase.

Shares in IGO (ASX:IGO) are trading 1.8 per cent higher at $6.78, while Regis Resources (ASX:RRL) has entered into a trading halt.