Skip to Content
scroll

Regis Resources (RRL)$3.17

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

chart
image description
Regis Resources (RRL)
Back to top