OceanaGold Corporation agreed on 17 August to acquire Ausgold Limited through a court-approved scheme that values the ASX-listed gold developer at about A$776m on a fully diluted basis.
Why OceanaGold Corporation is buying Ausgold Limited
The Katanning Gold Project has mineral resources of 2.44Moz and ore reserves of 1.33Moz, with targeted output of about 120,000oz a year over a mine life of more than ten years. OceanaGold said its development and operating expertise would help unlock the project, which would become its fifth asset.
Deal terms and financing
Ausgold shareholders receive 0.03365 new OceanaGold shares for each share, implying A$1.36, a 28% premium to the A$1.065 close on 14 August and 44% to the 20-day VWAP. They may elect cash instead, subject to a maximum pool of A$194m and scale-back. Former Ausgold holders would own up to about 8% of the enlarged group. A A$7.76m break fee applies in certain circumstances.
Regulatory approvals and timing
The scheme needs 75% approval of votes cast at a meeting expected in late November, court approval, Foreign Investment Review Board clearance and Toronto Stock Exchange approval, with completion expected by December 2026.
Market context
Ausgold's board unanimously recommends the deal and Dundee Corporation, which holds about 7.7%, has said it will vote in favour. OceanaGold also plans a A$20m bridge loan to Ausgold for working capital.
