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IGO Limited proposes $903m divestment
Global law firm Herbert Smith Freehills has advised IGO Limited on its proposed divestment of 30 per cent interest in the Tropicana Gold Mine.
Emma Musgrave
Firm: Herbert Smith Freehills (IGO Limited).
Value: $903 million.
Area: Corporate, finance.
Key players: The legal team advising IGO Limited was led by Herbert Smith Freehills partner Paul Branston with support from solicitor Jasper Johnson. Senior associates Sevan Gore and Geoff Kerrigan, as well as solicitors Linda Nguyen and Lucy Gordon also provided support.
Deal significance: According to a statement provided by Herbert Smith Freehills, the Tropicana Gold Mine is a top-five Australian open-pit and underground gold mine located in Western Australia. Meanwhile, IGO Limited is an ASX-listed mining company headquartered in Perth.
“IGO’s interest is proposed to be sold to Regis Resources Limited, an ASX-listed mining company (Regis),” the statement confirmed.
“The transaction follows IGO’s recent A$1.9 billion investment in Tianqi Lithium Energy, the 51 per cent owner of the Greenbushes Lithium Mine (the world’s largest hard rock lithium mine) and 100 per cent owner-operator of the Kwinana lithium hydroxide plant, both located in Western Australia. Herbert Smith Freehills also advised IGO on the Tianqi transaction and associated capital raising and debt facility (see here for further information).
“Completion of the divestment is subject to the waiver or non-exercise of a right of last refusal held by IGO’s joint venture partner, AngloGold Ashanti Australia Limited (AngloGold Ashanti).
“AngloGold Ashanti is the manager of the Tropicana Gold Mine and holds the remaining 70 per cent interest. If AngloGold Ashanti exercises its right, the transaction with Regis will not proceed and IGO will instead dispose of its 30 per cent interest to AngloGold Ashanti at the same price and on the same terms which have been agreed with Regis.
“Following completion of the Tropicana divestment and Tianqi transaction, IGO will be uniquely exposed to tier 1 nickel and lithium assets, each of which is critical to enabling a clean energy future. This will establish IGO as an Australian leader in the production of clean energy metals.”
Commenting further, Herbert Smith Freehills partner Mr Branston said: “The last six months have been truly transformational for IGO. The Tianqi transaction and the Tropicana divestment are aligned with IGO’s strategic focus on commodities that are critical to clean energy, and we are delighted to be supporting IGO on these important transactions.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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