Entering into a deal in 2002, South32 and IGO agreed to the former receiving royalty payments upon any mineral discoveries sourced from the soil samples gathered under the exploration licences. This forms the basis of South32’s lawsuit, as revealed by IGO.
However, the beleaguered nickel and lithium miner has promptly rebutted South32’s accusations, staunchly stating that they are devoid of merit.
Tropicana, situated approximately 300 kilometres northeast of Kalgoorlie, commenced operations in 2013 and is presently under the ownership of AngloGold Ashanti (JSE: ANG) (NYSE: AU) in collaboration with Regis Resources (ASX: RRL).
The open-pit, complemented by a burgeoning underground mining facet, yielded 437,000 ounces (100%) in 2022.
Regis, which acquired its share in Tropicana from IGO in 2021, entered a trading halt on Thursday before releasing a statement indicating that it was not party to South32’s legal action. Nevertheless, Regis asserted it would take appropriate measures to defend its position.
News of the lawsuit emerged shortly after IGO declared that it had placed its Cosmos nickel project in Western Australia into care and maintenance due to subdued prices. Furthermore, the company revised its annual lithium production forecast.
