Regis to Aquire 30% of Tropicana14 Apr 2021 07:39
"Regis will be paying 852$ US per Reserve oz for a 30% interest in the Tropicana Gold Mine .
Tropicana is a Tier 1 operating gold mine that produced over 420koz of gold in 2020. The Project currently has a seven-year reserve life with a 2,964koz Au Ore Reserve.
Under the terms of the agreement, Regis will acquire the 30% stake from IGO for a total consideration of A$903M (US$688M) cash. Regis intends to fund the Transaction through a fully underwritten equity raising of A$650M, consisting of a A$450M entitlement offer for existing shareholders, and a further A$200M to be sourced from institutional investors; and a A$300M term loan facility which will be provided by Bank of America.
Completion of the Transaction is subject to AngloGold Ashanti Australia Limited (AngloGold) waiving its Right of Last Refusal (ROLR). The Transaction is expected to complete by June 2021 if the ROLR is not exercised during the 60 day lapse period.
Based on 30% of the Project’s Ore Reserve balance of 808koz Au (2,694koz on a 100% basis) and the consideration of ~US$688M, Regis is paying US$852/oz in Ore Reserve. This is a premium to Minesonline.com’s 1, 3 and 5 year normalised average Operation Reserve multiples of US$206/oz AuEq, US$268/oz AuEq and US$277/oz AuEq respectively."
People are prepared to pay big money for ozs....
Reddirt . :)