Regis Resources has kyboshed media speculation that it was on the verge of fully acquiring the Tropicana joint venture in which it already holds a 30 per cent share.
A report in The Australian Financial Review published yesterday said Regis was “deep in the weeds of a major acquisition”.
The report went on to say that it was understood Regis and its joint venture partner, AngloGold Ashanti, “are in advanced talks for the sale of AngloGold’s 70 per cent stake in the Tropicana gold project in Western Australia”.
Today, Regis Resources issued a statement that refuted the report and clarified its position.
“Regis regularly assesses acquisition opportunities based on various factors and will only elect to proceed if the acquisition aligns with strategic goals and is assessed to be accretive for shareholders,” the statement said.
“Regis confirms that it is not in advanced discussions with respect to any specific opportunity.
“Regis will keep the market informed as appropriate in accordance with its continuous disclosure obligations but otherwise does not intend to comment.”
The AFR did not suggest a formal bid had been made, nor that a deal had been signed.
Regis is one of Australia’s largest, unhedged gold producers with 100 per cent of gold produced from Australian assets.
In March 2021, it signed a conditional binding agreement with IGO to acquire its 30 per cent interest in Tropicana for cash consideration of $903 million.
Tropicana, located 330km north-east of Kalgoorlie in Western Australia, is a low cost, high margin, top-five-producing Australian open-pit and underground gold mine.
The Tropicana discovery was made in 2005 and a bankable feasibility study was completed and development approval received in 2010.
Mining commenced in 2012, and first gold was produced in September 2013. In September 2020, commercial production was declared from the Boston Shaker underground mine, the first underground operation at Tropicana.
Regis recently strengthened its growth pipeline with the acquisition of the Southern Star gold prospect.
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Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
