The Regis Resources Limited (ASX: RRL) share price is one to watch today after the company provided an acquisition update.
At Wednesday's market wrap, the gold miner's shares closed the day at $2.67.
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Why the Regis share price is on watch
Investors will be keeping an eye on the Regis Resources share price today after the company announced it will proceed with the proposed transaction following the completion of the set-out conditions.
According to this morning's release, Regis has been granted approval for the transfer of certain tenements from IGO Ltd (ASX: IGO). This means that the proposed acquisition of a 30% interest in the Tropicana project by Regis has been given the green light.
The consent of the transfer came from the Minister of Mines and Petroleum.
Regis will now look to complete the transaction of sale with a cash consideration of $903 million. This is expected to occur on or around 31 May 2021.
Regis Resources managing director and CEO Jim Beyer commented:
We are very pleased that the Minister's approval for the tenement transfer has been received and, now that the transaction is unconditional, we look forward to completing the deal.
…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.
About Tropicana
Located in the Albany-Fraser Orogen in Western Australia, the Tropicana gold mine is considered one of Australia's top five largest gold mines.
The open-pit and underground mine achieved gold production of 463 thousand ounces (koz) in FY20. Furthermore, the site has guidance of between 380koz to 430koz at an all-in-sustaining cost of $1,730 to $1,860 in FY21. The lower estimate is due to the impact at Havana for access to the deeper open pit ore from late-2021.
Regis share price performance
It's been a rough 12 months for investors, with Regis Resources shares plummeting 40% since this time last year. Furthermore, the company's shares hit a multi-year low just last week. When gazing over the company's year-to-date performance, the Regis share price is down by around 28%.
At today's prices, Regis has a market capitalisation of roughly $1.86 billion, with approximately 696.6 million shares on issue.
