AngloGold Ashanti has decided to waive its pre-emptive right over the 30% stake in the Tropicana Gold Mine, allowing Regis Resources Limited (ASX: RRL) to acquire the stake from current joint venture partner IGO Limited (ASX:IGO).
AngloGold Ashanti, which owns 70% of Tropicana and is the mine’s operator, announced earlier this month that 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, subject to waiving its right to pre-empt the Regis offer on the same price and terms.
Christine Ramon, AngloGold Ashanti’s Interim CEO, said the company’s decision to waive the opportunity was made ‘after careful consideration’.
“Tropicana is a key asset in AGA’s portfolio. Having decided, in this context and after considerable deliberation to waive our pre-emptive rights, with the sale process behind us we are looking forward to working with Regis to deliver Tropicana’s considerable potential over the coming years,” Ms Ramon said.
With a Mineral Resource of 7.64Moz of gold and Ore Reserve of 2.7Moz, Tropicana is a key asset in AngloGold Ashanti portfolio and one of Australia’s best gold mining assets.
In February of this year the company 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, AngloGold Ashanti 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,” said Mike Erickson, AngloGold Ashanti’s Senior Vice President: Australia.
“We wish them well in their new strategy and focus on battery metals.”