RRL 0%: the gold miner spent the session in a trading halt today as they look to sure to raise money for the purchase of Independence Group’s (IGO) stake in Tropicana Gold. The 30% stake has been valued at $903m with Regis launching a $650m capital raise coupled with $300m in debt to fund the deal – new shares will be issued at $2.70, a 14% discount to last with $200m earmarked for an institutional placement and $450m raised through a non-renounceable entitlement offer. It’s a big raise for RRL, with new shares to represent almost a third of shares on issue after the deal. While the deal will transform RRL, they’re paying a very full price for it, plus they’re raising equity at a poor level.
Independence Group(IGO) was 1.5% higher today on the news. They will use the funds to pay down the debt they took on during the acquisition of an interest in a WA Lithium project last year. The company has transformed itself into an EV leveraged miner with nickel and lithium exposure, one set up for the future it seems