An agreement to purchase IGO’s 30 per cent interest in the Tropicana gold mine joint venture with AngloGold Ashanti in Western Australia, has been made by Regis Resources.
The sale finalises the chapter in IGO’s strategic review of Tropicana. This included a global sales process for its stake in the gold mine. IGO will continue focussing on battery minerals for clean technology, as a result of the $903 million from Regis.
IGO managing director and chief executive Peter Bradford said the outcome was ideal.
“Since discovery in 2005, Tropicana has been an important part of IGO’s history and a key driver of our sustained growth,” he said.
“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.”
IGO’s transition into clean energy commodities was initiated by its acquisition of a 49 per cent stake in Tianqi Australia for $1.9 billion last December.
“We are therefore delighted to have entered into an agreement to sell Tropicana to Regis,” Bradford said.
“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 1 nickel, copper, cobalt and lithium.”
A joint venture of operating the Tropicana minebetween IGO and AngloGold Ashanti has been in operation for over 18 years.
Regis’ acquisition of IGO’s Tropicana stake is effective from March 31st2021.
Chief executive officer and Managing Director of Regis, Jim Beyer hopes the acquisition will help to align further opportunities for the company.
“This is a genuinely transformational transaction for Regis and one that delivers on our strategic objectives to grow as a safe, responsible, reliable, long life, low cost gold producer, generating strong financial returns,” he said.
“Diversifying the company’s robust portfolio through the acquisition of a 30 per cent interest in the Tropicana operation will deliver significant improvements in the company’s resources, reserves and annual production, along with providing additional immediate cashflows, all of which adds to the strength of our platform for undertaking further organic and inorganic growth activities.”
Producing 463,000 ounces in the 2020 financial year, Tropicana is one of the highest producing gold mines in Australia.