AngloGold Ashanti has approved Regis Resources‘ acquisition of a 30% interest in the Tropicana project in Western Australia from joint venture partner IGO.

The move comes after AngloGold Ashanti decided to waive its pre-emptive right over the 30% stake in the Tropicana Gold Mine following careful consideration.

With the latest development, the proposed acquisition by Regis Resources is now free from the condition precedent relating to those pre-emptive rights and only remains conditional on the approval from the Minister for Mines and Petroleum to the transfer of certain tenements.

Regis Resources expects to submit the ministerial consent application for the mine in the near future.

IGO announced the signing of a binding agreement with Regis Resources to sell its 30% interest in the Tropicana joint venture for $698m (A$903m).

The transaction will conclude once AngloGold Ashanti waives its right to pre-empt Regis Resources’ offer on the same price and terms.

Anglogold Ashanti interim CEO Christine Ramon said: “With the sale process behind us, we are looking forward to working with Regis to deliver Tropicana’s potential over the coming years.”

The Tropicana mine has a mineral resource of 7.64Moz of gold and ore reserve of 2.7Moz. The mine was discovered by AngloGold Ashanti and serves as a key asset in its portfolio.

With a 70% stake in Tropicana, AngloGold Ashanti is the operator of the mine.

Regis Resources managing director and CEO Jim Beyer said: “While recognising the pending nature of the Minister’s approval for the tenement transfer, we look forward to completing this key strategic transaction.

“With this transaction, Regis will acquire a 30% interest in a well-operated, favourably located, tier-one mine with a production outlook of 380Koz-430Koz in FY21E (100% basis), an expected mine life beyond ten years and multiple near mine and regional growth opportunities for longer-term upside.”

The acquisition also provides a larger-scale, longer-term financial and operating platform to the company to pursue internal and external growth opportunities.