AngloGold Ashanti has surrendered its pre-emptive right to Regis Resources to allow the latter own 30 per cent of the Tropicana Gold mine.
Owning the majority of stake in the Tropicana Gold Mine, AngloGold Ashanti said it took the decision after careful consideration, so as to allow Regis Resources acquire the stake from IGO Limited, the current joint venture partner.
The company confirmed this new development in a press statement released today, April 22, 2021.
Anglo Gold Ashanti owns 70 per cent of the Tropicana and also doubles as the operator of the mine. AngloGold’s current partner, IGO Limited announced recently of its binding contract with Regis for the sale of IGO’s 30 per cent stake in the mine for $903 million.
IGO’s Managing Director and CEO, Peter Bradford commenting on the transaction said:
“Since discovery in 2005, Tropicana has been an important part of [our assets] and a key driver of our sustained growth. 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.
“We are therefore delighted to have entered into an agreement to sell Tropicana to Regis.
“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 nickel, copper, cobalt, and lithium.”
Peter Bradford, IGO’s Managing Director and CEO
Meanwhile, the completion of the transaction was only going to be effective upon the waiver of pre-emptive rights of the mine by AngloGold Ashanti.
AngloGold Ashanti upbeat about Regis Resources Partnership
Speaking in relation to the partnership, Christine Ramon, AngloGold Ashanti’s Interim Chief Executive Officer said that: “we’re pleased to start our long-term relationship with Regis, which recognises the value that we see at Tropicana.
“With the sale process behind us, we are looking forward to working with Regis to deliver Tropicana’s potential over the coming years.”
Christine Ramon, AngloGold Ashanti’s Interim Chief Executive Office
AngloGold Ashanti is upbeat about this new partnership, the more so, after discovering that Tropicana holds a mineral resource of 7.64 million ounces of gold and ore Reserve of 2.7 million ounces. This much deposit of mineral resources show a key asset portfolio and one of Australia’s best gold mining assets.
AngloGold Ashanti recently outlined a multi-year organic growth plan, to scale up production for next four years. This plan involves a combination of its brownfield investment within its existing suite of mines and then investment in greenfield projects in Colombia.
The strategy mapped out by AngloGold is hinged on disciplined capital allocation at conservative gold price assumptions. Moreover, this includes focus on increasing its reserves from exploration of its mine sites. Having experienced a very good run throughout last year, the company made 6.1 million ounces in excess of its gold on a gross basis.
“IGO has been an excellent partner for well over a decade, through exploration to development and then operation,” Mike Erickson, AngloGold Ashanti’s Senior Vice President in Australia, said. “We wish them well in their new strategy and focus on battery metals.”
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