Regis Resources (ASX:RRL) receives go-ahead to purchase Tropicana gold mine interest

Company News

by Michael Luu

Gold miner Regis Resources (ASX:RRL) has received the go-head from Tropicana gold mine joint-owner AngloGold Ashanti (ASX:AGG) to purchase IGO’s 30 per cent interest in the asset.

As the majority stakeholder with a 70 per cent stake in the gold project in Plumridge Lakes of Western Australia, AngloGold reserved the right to veto the transaction, should it deem the takeover to not be in the best interest of the South African-based gold producer.

In this case, the company recognised Regis as a suitable candidate to replace IGO’s position as a development partner at the gold mining project. Hence, the company has chosen to relinquish its right of last refusal to the acquisition.

This effectively means Regis Resources (ASX:RRL) can proceed with its $903 million purchase by May 31.

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

Shares in Regis Resources (ASX:RRL) are trading 1.6 per cent higher at $2.78