AngloGold Ashanti has, after careful consideration, decided to waive its pre-emptive right over the 30% stake in the Tropicana Gold Mine, paving the way for Regis Resources to acquire the stake from current joint venture partner IGO Limited.
AngloGold Ashanti owns 70% of Tropicana and is the mine’s operator.
On 13 April 2021, IGO announced it had entered into a binding agreement with Regis for the sale of IGO’s 30% interest in the Tropicana Joint Venture for A$903 million.
Completion of the transaction is subject to AngloGold Ashanti waiving its right to pre-empt the Regis Offer on the same price and terms.
“We’re pleased to start our long-term relationship with Regis, which recognises the value that we see at Tropicana,” said Christine Ramon, Anglogold Ashanti’s Interim Chief Executive Officer.
“With the sale process behind us, we are looking forward to working with Regis to deliver Tropicana’s potential over the coming years.”
AngloGold Ashanti discovered Tropicana which, with a Mineral Resource of 7.64Moz of gold and Ore Reserve of 2.7Moz, is a key asset in its portfolio and one of Australia’s best gold mining assets.
In February of this year AngloGold Ashanti outlined a multi-year organic growth plan, to increase production over the coming four years from brownfield investment in its existing suite of mines and then investment in greenfield projects in Colombia.
The company’s strategy is premised on disciplined capital allocation at conservative gold price assumptions, with an initial focus on increasing reserves from exploration on its mine sites.
Last year, the Company added 6.1 million ounces of gold on a gross basis, further extending the life of its portfolio.
“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: Australia, said. “We wish them well in their new strategy and focus on battery metals.”