OceanaGold to acquire Ausgold for US$549 million

OceanaGold Corporation has entered into a definitive agreement to acquire Ausgold Limited for approximately A$776 million (US$549 million). The transaction, structured as an Australian court-approved scheme of arrangement, will grant OceanaGold 100% ownership of Ausgold and its Katanning Gold Project in Western Australia.

Under the terms of the deal, Ausgold shareholders will receive 0.03365 OceanaGold shares for each Ausgold share held, representing a value of A$1.36 per share. Shareholders may also elect to receive cash, subject to a maximum cash pool of A$194 million (US$137 million). Upon completion, Ausgold shareholders are expected to hold between 6% and 8% of OceanaGold.

The Katanning Gold Project is an open-pit development located roughly 275 kilometers southeast of Perth. It has the potential to produce over 100,000 ounces of gold annually with a mine life exceeding 10 years. OceanaGold expects first production from the site in 2029 and plans to conduct further drilling through 2027.