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IGO agrees to sell Tropican Gold Mine to Regis Resources

Published by , Editor
Global Mining Review,

IGO Ltd has entered into a binding agreement with Regis Resources Ltd for the sale of its 30% interest in the Tropicana Gold Mine for AUS$903M in cash consideration payable upon completion.

The execution of the binding sale agreement marks the completion of the Tropicana strategic review which was announced in September 2020. As part of this strategic review, IGO considered a number of options to realise full value for its 30% interest in Tropicana, including a global sales process which resulted in very strong interest and has concluded with the decision to sell IGO’s interest in Tropicana to Regis. The divestment to Regis for cash maximises the value of Tropicana for IGO’s shareholders and allows IGO to concentrate on its strategic focus on commodities critical to enabling clean energy.

IGO’s Managing Director and CEO, Peter Bradford, commented:

“Since discovery in 2005, Tropicana has been an important part of IGO’s history and a key driver of our sustained growth. While IGO continues to believe that Tropicana is a high-quality tier-1 gold asset with strong upside potential, it is no longer aligned with our focus on commodities critical to clean energy.

“We are therefore delighted to have entered into an agreement to sell Tropicana to Regis.

“This transaction, along with the recent investment in Tianqi Lithium assets in Australia, solidifies IGO’s position of becoming a globally relevant pure-play battery minerals producer and developer, uniquely exposed to tier nickel, copper, cobalt, and lithium.

“We are extremely pleased with the outcome of the transaction and the assistance of the AngloGold Ashanti teams throughout the sales process. I take this opportunity to acknowledge and thank AngloGold Ashanti for their partnership and support over the last 18 years.

“I would also like to acknowledge the IGO Team. To successfully execute the strategic review and associated divestment of Tropicana, while also progressing the investment in the lithium assets of Tianqi in Australia, demonstrates the collective commitment and strength of the IGO Team.”

Completion of the transaction with Regis is subject to the waiver or non-exercise of a right of last refusal (ROLR) of up to 60-days held by AngloGold Ashanti Australia Ltd. If AngloGold Ashanti exercises its ROLR, the transaction with Regis will not proceed and IGO will instead dispose of its 30% interest in Tropicana to AngloGold Ashanti at the same price and on the same terms which have been agreed with Regis.

Other than the waiver or non-exercise of the ROLR, all other completion conditions are considered administrative. In the event the ROLR is not exercised and lapses after 60-days, the transaction is expected to close by June 2021.

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Australian mining news Anglo American news Gold mining news