The Regis Resources Limited (ASX: RRL) share price is on course to end the week on a high.
In morning trade, the gold miner's shares are up 11% to $1.44.
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Why is the Regis Resources share price storming higher?
Investors have been bidding the Regis Resources share price higher today amid reports that Andrew 'Twiggy' Forrest is wanting to increase his stake in the company.
According to the AFR, the mining billionaire was seeking to acquire a 15% stake in the company for $1.48 per share. This represents a 13.8% premium to its last close price and values the stake at $168 million.
It's understood that Twiggy had enlisted Barrenjoey's equities desk to source the shares for his Wyloo Consolidated Investments business, which reportedly already owns a 4.9% stake in Regis Resources.
However, it was 15% or nothing as far as Twiggy was concerned, with his order made on a kill or fill basis.
Did it fill?
Unfortunately for Twiggy, his order was not a success according to the AFR. It quotes a message from Barrenjoey:
We received interest for in excess of 12% of the company. When aggregated with Wyloo's existing position (4.9%), the combined stake would not have met 19.9% target as stipulated at launch. As a result, the transaction did not proceed.
Nevertheless, this news has caught the eye of investors on Friday. Which has led to the Regis Resources share price leaping higher.
Should you invest?
One broker that would be supportive of Twiggy's ambitions is Macquarie. Last week the broker put an outperform rating and $2.20 price target on the company's shares.
Even after today's gain, this still implies potential upside of over 50% for investors over the next 12 months.
