The Juice from Street Talk:ASX-listed gold miner Regis Resources...

The Juice from Street Talk:


ASX-listed gold miner Regis Resources is set to acquire IGO’s stake in the Tropicana gold mine in Western Australia.

Street Talk can reveal Regis has won IGO’s Tropicana auction, which was overseen by Macquarie Capital and attracted a handful of bids from domestic and offshore gold miners.

It is understood to be paying $900 million for IGO’s 30 per cent stake in the mine.

Tropicana is located 300km north-east of Kalgoorlie in WA, was discovered in 2005 and started pouring gold in 2013 after its owners had spent north of $800 million to get it up and running. The project is operated by AngloGold Ashanti, which also has a 70 per cent stake in the project.

Regis is expected to launch a $650 million equity raising to help fund its bid and has lined up $300 million in fresh debt, sources said.

The raising is expected to launch on Tuesday and comprise both an institutional placement and rights issue.

Sources said the raising was likely to be done at a 10 per cent to 12 per cent discount to the last close.

It’s a big win for Regis, which is another WA gold miner that produced 172,978 ounces of gold in the six months to December 31 and has a $1.65 billion market capitalisation.
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Ash here.

That is greater than a 1:3 raise.

I struggle to see why anyone would want a 30% non-controlling interest, but there it is.

At least this dilutes the rotten hedge book.

Ash