Regis Resources Acquires For $150M McPhillamys’ Gold Project, Shares Up
In a script deal worth $150 million, Regis Resources has acquired one of the largest gold discoveries in New South Wales over the past decade, the McPhillamys gold project.
"The acquisition of the project will increase Regis's gold resource base to 9 million ounces and presents Regis with an excellent medium-term development opportunity beyond the current growth projects at the company's Duketon operations in Western Australia," Mark Clark, managing director of Regis Resources, announced on Thursday.
With three exploration licences, two freehold properties overlapping part of the project area, and minor plant and equipment, the McPhillamys project holds a Joint Ore Reserves Committee resource of 2.5-million ounces. McPhillamys is located in the Bathurst region of NSW.
"While there is a lot of work to do over the next three years, including a resource drill out, reserve study, technical and logistical studies and a definitive feasibility study, Regis is confident that this work will ultimately confirm the viability of a significant gold mining operation at McPhillamys," Mr Clark said.
Under the deal, Regis will pay $150 million in shares, each share priced at $4.20.
Shares of Regis Resources, on confirmed news of the acquisition, jumped 16 cents, or 3.5 per cent, to $4.70 at 1309 AWST.