OceanaGold to Acquire Ausgold for A$776M, Adding Katanning Gold Project
OGC sits 76% above its 52-week low of $16.25.
Summary
OceanaGold is acquiring Ausgold Limited for A$776M (US$549M) via a scheme of arrangement, paying 0.03365 OceanaGold shares per Ausgold share, implying A$1.36 per share. Ausgold shareholders can elect cash up to A$194M, and will own 6-8% of OceanaGold post-deal. The acquisition adds the Katanning Gold Project in Western Australia, a development asset with +100koz annual production potential and first gold expected in 2029. Ausgold's board unanimously recommends the deal, and major shareholder Dundee Corporation (7.7%) supports it. This is OceanaGold's first acquisition in Australia and expands its portfolio to five assets. The company cites strong free cash flow and balance sheet to fund development while maintaining capital returns. Conference call scheduled for 8am ET today to discuss the transaction.
At the time of this announcement, OGC was trading at $28.60 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $16.25 to $43.33. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.