OceanaGold expands to Australia with $553M Ausgold buy
The Canadian miner gains a foothold in Western Australia as soaring bullion prices fuel wave of gold-sector deals.
Canadian gold and copper producer OceanaGold (TSX, NYSE: OGC) has acquired Australian mining company Ausgold (ASX: AUC) for A$776 million, or approximately $553 million. This marks OceanaGold's first acquisition in Australia and grants the company control over the Katanning gold project located in Western Australia. The offer represents a 27.7% premium to Ausgold's Friday closing price.
Under the terms of the deal, Ausgold shareholders will receive 0.03365 OceanaGold common shares for each share they own, with an option to choose cash instead. OceanaGold's CEO, Gerard Bond, expressed enthusiasm about the acquisition, stating, "This marks our first acquisition in Australia, and we are excited to build on the great work done by the Ausgold team to further optimize the development of the Katanning project for the benefit of both OceanaGold and Ausgold shareholders."
The addition of the Katanning project to OceanaGold's portfolio enhances the company's growth prospects as it continues to seek external opportunities alongside its new mines in the United States and New Zealand. Following the transaction, Ausgold shareholders are projected to own around 6% to 8% of OceanaGold.
The Katanning site lies approximately 275 kilometers southeast of Perth in Western Australia, a significant global mining hub with established infrastructure and access to a skilled workforce. Ausgold holds permits for the development of the project's footprint, and its board has given unanimous approval for the transaction.
Dundee, a major shareholder in OceanaGold holding a 7.7% stake, has indicated its intention to vote in favor of the deal. The acquisition is expected to close in December, contingent upon shareholder approval and other standard conditions. OceanaGold has been actively seeking acquisition targets to supplement its organic growth strategy, which includes two upcoming mines under development: one underground mine in Haile, South Carolina, and another large-scale underground operation in Waihi North, New Zealand.
Written by urgent.news from Mining.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
