Regis Resources Limited has announced its involvement in ongoing legal proceedings concerning royalty payments from the Tropicana Gold Mine.
This development follows an initial announcement on February 1, 2024, regarding a claim by South32 Limited against IGO Ltd in the Supreme Court of Western Australia.
South32 has initiated proceedings alleging that it is entitled to royalty payments at a rate of 1.5 per cent of gross revenue from 100 per cent of the production from the Tropicana Gold Mine.
Additionally, South32 is seeking interest and costs associated with these payments.
In response, IGO has denied any liability, arguing that the pre-conditions for such royalty payments have not been met.
In a recent update, IGO has applied to join Regis and its subsidiary, AFB Resources Pty Ltd, in the Supreme Court proceedings.
This move is based on an indemnity agreement that Regis provided to IGO, covering any royalty liabilities arising from the date of IGO’s sale in the Tropicana Gold Mine Joint Venture, which was completed on May 31, 2021.
IGO’s application aims to ensure that if it is found liable for any royalties, it can recover the amounts from Regis under the indemnity agreement.
Regis has stated its intention to vigorously defend against any allegations related to the payment of the royalty and to take all necessary steps to protect its position.
The company acknowledges its interest in the outcome of the proceedings and the potential implications of the indemnity agreement with IGO.
The parties involved have now completed their respective pleadings, and the case will proceed in the Supreme Court of Western Australia.
The outcome of this legal battle will be closely watched by stakeholders in the mining industry, given the significant financial implications of the royalty claims.
