The Regis Resources Limited (ASX: RRL) share price is on the move in early trade following a pre-market announcement from the Aussie gold miner.
Image source: Getty Images
Why is the Regis Resources share price climbing?
There was a flurry of price sensitive announcements from Regis Resources this morning. All of those related to the Tropicana Gold Mine near Kalgoorlie, Western Australia.
IGO Ltd (ASX: IGO) announced that it has sold its 30% stake in the Tropicana Gold Mine. That sale comes after the satisfaction of a key condition precedent for the proposed transaction.
That was the waiver or non-exercise of a right of last refusal (ROLR) by AngloGold Ashanti Australia Limited. AngloGold Ashanti holds the remaining 70% interest in the mine but looks set to partner with Regis Resources.
Given AngloGold Ashanti has waived its ROLR, that paves the way for Regis Resources to snap up the 30% stake. The transaction will complete on or before 31 May 2021 and the Regis Resources share price has jumped higher accordingly.
Regis has entered a conditional binding agreement for the Tropicana stake for cash consideration of A$903 million. The acquisition remains conditional on the approval from the Minister for Mines and Petroleum to the "transfer of certain tenements".
Regis Managing Director and CEO Jim Beyer said, "We are very pleased this critical condition has been satisfied and look forward to working closely with our new JV partner, AngloGold".
"This acquisition provides significant strategic benefits to Regis and when combined with our existing assets, provides a larger-scale, longer-term financial and operating platform to pursue internal and external growth opportunities", he added.
The Regis Resources share price jumped higher on the news with investors reacting well to the latest acquisition. At the time of writing, Regis shares were up 0.9% to $2.77 per share to start the day.
