Regis Resources has continued the flurry of merger and acquisition activity in the local resources space over the past four days by announcing a $150 million scrip takeover of the jointly owned McPhillamys gold mine.
In a week where analysts' predictions of major deals came to fruition, Regis made its long-awaited move, announcing a letter of agreement on the NSW mine - owned by Alkane Resources (49 per cent) and Newmont Australia (51 per cent) - with the scrip-based offer.
Regis has long been touted as a potential customer in the gold space, with louder rumblings circulating since well-known industry veteran and founding director of Equigold Nick Giorgetta joined the company as non-executive chairman in mid-2009.
Local markets reacted positively to the move, pushing Regis shares up 14¢ to a 10-year high of $4.68.
Regis' announcement came as British property fund manager Graham Edwards continued the streak of M&A activity, with his companies DMCI Holdings and D&A Income revealed as the suitors in the takeover of Philippines-focused nickel hopeful ENK.
The $73.8 million cash offer has been recommended unanimously by ENK's independent directors.
Mr Edwards, the head of British property fund Telereal Trillium, also recently backed an underwritten capital raising for struggling WA gold miner Navigator Resources.
In a statement to the ASX yesterday Navigator - which is in a trading halt - confirmed it has been targeted in a takeover bid by Singapore-listed LionGold, as revealed in _WestBusiness _on Wednesday.
Speaking on the McPhillamys purchase, Regis managing director Mark Clark said talks with Newmont and Alkane had been going on "for a while".
He said he believed McPhillamys would be an "excellent medium-term growth opportunity" which would shore up its production base in addition to the low-cost Moolart Well operation, 130km north of Laverton.
Mr Clark conceded there were still a number of boxes to be ticked before the JORC compliant 2.5 million ounce deposit could move into production.Regis' market capitalisation was $2.13 billion yesterday.
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