Mid-tier Australian gold miner Regis Resources (ASX: RRL) said on Tuesday it is buying a 30% stake in AngloGold Ashanti’s Tropicana mine for A$903 million ($688.3m), increasing its production base by a third.
Regis is acquiring the interest in Tropicana, located in the Great Victoria Desert 330km from Kalgoorlie, currently held by IGO and will undertake an equity raising of up to A$650 million ($496m) to fund the acquisition.
Mining at Tropicana began 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 costs of A$1,171/oz. ($893/oz.) Regis is targeting 355–380,000 ounces of gold production this year.