Interesting observations from Mines Online. The transaction is expensive when measured against reserves. To make the transaction closer to fair value (based on other transactions for gold reserves) a high degree of confidence is required in converting a large portion of the measured, indicated and inferred category into reserves. I guess they are confident but only time will tell and they see good exploration options.
I have been watching Regis for some time and was hopeful that McPhillamys would get the nod, that would have been my entry point (although the day before the acquisition I was toying with the idea of buying a few0. I sort feel that McPhillamys has been pushed out, getting all the appropriate permits is taking longer. Hence they moved for Tropicana.
Big call by the CEO and Board.
(20min delay)