Regis Resources buys $688m stake in Anglogold’s Tropicana mine

Mid-tier Australian gold miner Regis Resources said on Tuesday it is buying a 30% stake in AngloGold Ashanti’s Tropicana mine for A$903 million ($688.3 million) adding a third to its production base.

Regis is acquiring the interest in Tropicana, located in the Great Victoria Desert 330km from Kalgoorlie, currently held by IGO Ltd and will undertake an equity raising of up to A$650 million to fund the acquisition.

Mining at Tropicana commenced in 2012 and first gold was produced in September 2013. Since then, over three million ounces have been produced from the open pit.

Gold production from Tropicana for FY20 was 463,118 ounces at a cash cost of A$806/oz and All-In Sustaining Cost of A$1,171/oz. Regis is targeting 355–380,000 ounce of gold production this year.