The company has signed a letter of agreement to purchase three exploration licences (including the gold project), mining information, two freehold properties overlapping the project area and minor plant and equipment.

Regis managing director Mark Clark said the acquisition of the 2.5 million ounce project would increase Regis' gold resources to 9 million ounces and give the company an excellent medium term development opportunity.

"Whilst there is a lot of work to do over the next three years, including a resource drill out, reserve study, technical and logistical studies and DFS, Regis is confident that the work will ultimately confirm the viability of a significant gold mining operation at McPhillamys," he said.

"This has the potential to significantly increase the already strong production growth outlook for Regis from the company's wholly owned Duketon gold project in Western Australia."

McPhillamys is located between the regional centres of Orange and Bathurst in Central Western NSW, about 250km from Sydney.

The company said the completion of the transaction was dependent upon the NSW Minister for Mines granting renewal of exploration licences; ministerial approval for the transfer of exploration licences; all parties executing the legal documentation; approval of Regis' project financier; FIRB approval of the issue of shares to Newmont if required; and Regis obtaining all shareholder approvals.

The conditions need to be completed within 90 days.

The company said the $150 million would be satisfied by the issue of Regis shares and would be calculated on an issue price of $4.20 a share.

Regis shares were up 1.3% on limited trading to $4.60 while Alkane improved 3% to $1.03.