OceanaGold Corporation (TSX: OGC, NYSE: OGC) has announced a definitive agreement to acquire Ausgold Limited (ASX: AUC), the owner of the Katanning Gold Project in Western Australia, through a court-approved scheme of arrangement.
The transaction terms offer Ausgold shareholders 0.03365 OceanaGold shares for each Ausgold share, valuing the offer at A$1.36 per Ausgold share and the total equity value at approximately A$776 million (US$549 million).
Ausgold shareholders may opt for a cash alternative, subject to a maximum cash pool of A$194 million (US$137 million).
Post-transaction, Ausgold shareholders are expected to hold between 6 percent and 8 percent of OceanaGold.
The scheme is anticipated to be completed by December 2026, pending shareholder and court approvals.
OceanaGold has engaged Jarden and BMO Capital Markets as financial advisors, with Corrs Chambers Westgarth as legal advisor for the transaction.
Gerard Bond, President and Chief Executive Officer of OceanaGold, said: ""The acquisition of Ausgold adds an advanced, high-quality, low-capital, open-pit development asset to our portfolio at an attractive valuation. The Katanning Gold Project will be our fifth asset, located in one of the world's premier mining jurisdictions and is a natural fit with our proven development and operating capabilities. "