Aug 17 (Reuters) – Canadian gold and copper producer OceanaGold (OGC.TO), plans to acquire Australia’s Ausgold (AUC.AX), in a deal valued at A$776 million ($552.74 million), the companies said on Monday.
Here are some details:
The deal represents a premium of 27.7% to Ausgold’s previous close on Friday and gives OceanaGold ownership of the Katanning project in Western Australia.
Trading in Ausgold’s shares was halted earlier in the day ahead of the announcement.
Ausgold shareholders will own about 6% to 8% of OceanaGold upon completion of the deal.
“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 Gold Project for the benefit of both OceanaGold and Ausgold shareholders,” OceanaGold CEO Gerard Bond said.
($1 = 1.4039 Australian dollars)
Reporting by Sathvi G Bhat in Bengaluru; Editing by Sherry Jacob-Phillips
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.