IGO and Regis Resources Face South32 in Tropicana Gold Mine Royalty Dispute
Regis Resources has filed to join IGO in the legal action initiated by South32 over a $122 million royalty dispute stemming from the Tropicana gold mine proceeds.
In February, South32 sued IGO in the Supreme Court of Western Australia, claiming it is owed royalties from the mine dating back to 2014. The Tropicana gold project, located 330 kilometers from Kalgoorlie, is a joint venture between Regis Resources and AngloGold Ashanti, with AngloGold holding a 70 percent stake.
In 2021, IGO sold its 30 percent stake in the Tropicana gold mine to Regis Resources for $903 million in cash. Both Regis and IGO have now announced that an application has been made to add Regis and its subsidiary AFB Resources to the legal proceedings as interested parties.
"Regis intends to vigorously defend any allegations related to the payment of the royalty and take all appropriate steps to protect its position," Regis stated. The company has also agreed to indemnify IGO against any potential claim.
South32's lawsuit alleges it is owed royalty payments calculated at 1.5 percent of the gross revenue from 100 percent of the Tropicana mine's production, according to IGO. The involved parties have completed their pleadings in the legal action.
"IGO continues to deny any liability to South32, asserting that the pre-conditions for any entitlement to be paid a royalty have not been met," IGO stated. "While IGO maintains that South32's claim is without merit, it has taken this precautionary step to seek to join Regis to the proceedings to ensure that, in the event IGO is found liable for any royalties from May 31, 2021, IGO can recover any such amounts pursuant to the Regis indemnity."
