AngloGold gives Regis green light for Tropicana deal

IGO holds a 30 per cent interest in the Tropicana joint venture with AngloGold Ashanti. Image: IGO

AngloGold Ashanti has supported IGO’s decision to sell its 30 per cent interest in the Tropicana joint venture project in Western Australia to Regis Resources.

The $903 million acquisition is subject to AngloGold’s right to stop Regis’ from securing its stake in the Tropicana mine.

AngloGold, which is the 70 per cent owner of Tropicana, has waived this right, enabling the transaction to go ahead.

“Tropicana is a key asset in (AngloGold’s) portfolio,” AngloGold interim chief executive officer Christine Ramon said.

“Having decided, in this context and after considerable deliberation to waive our pre-emptive rights, with the sale process behind us we are looking forward to working with Regis to deliver Tropicana’s considerable potential over the coming years.”

IGO welcomed the decision, stating that it is working with Regis to complete the transaction on or before May.

The Tropicana mine boasts a mineral resource of 7.64 million ounces of gold and a 2.7-million-ounce ore reserve.

It is one of the highest producing gold mines in Australia, delivering 463,000 ounces in the 2020 financial year.

IGO stated that Tropicana’s divestment would allow it to focus on clean energy commodities.

“In addition, post the completion of the Tropicana divestment and the acquisition of the Australian lithium assets of Tianqi Lithium Corporation, IGO will have a strong balance sheet with proforma net cash of $200 million, thereby enabling the company to continue seeking growth opportunities through exploration and further mergers and acquisitions,” IGO stated.

AngloGold senior vice president Australia, Mike Erickson thanked IGO for helping grow Tropicana.

“IGO has been an excellent partner for well over a decade, through exploration to development and then operation,” he said.

“We wish them well in their new strategy and focus on battery metals.”

AngloGold and IGO have been operating the Tropicana mine for 18 years.

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