VANCOUVER: OceanaGold Corp. announced Monday it has agreed to acquire Ausgold Ltd. in a transaction valued at approximately 776 million Australian dollars ($549 million U.S.), adding a development-stage gold project in Western Australia to the company’s portfolio.
The deal, structured as a court-approved scheme of arrangement, would give Ausgold shareholders 0.03365 common shares of OceanaGold for each Ausgold share held. The offer price of A$1.36 per share represents a 28% premium to Ausgold’s last closing price and a 44% premium to its 20-day volume-weighted average price.
Ausgold shareholders will have the option to receive cash instead of shares, subject to a maximum cash pool of A$194 million. Upon completion, Ausgold shareholders are expected to own approximately 6% to 8% of the combined company.
The acquisition gives OceanaGold control of the Katanning Gold Project, a conventional open-pit development asset located about 275 kilometers southeast of Perth. The project has an estimated 10-plus year mine life with potential annual production exceeding 100,000 ounces, according to a December 2025 definitive feasibility study.
“This marks our first acquisition in Australia, and we are excited to build on the great work done by the Ausgold team,” said Gerard Bond, president and chief executive officer of OceanaGold, in a statement.
The Katanning project holds granted mining leases over its entire planned development footprint and is well-advanced through the permitting process. OceanaGold intends to conduct additional drilling through 2027 to further delineate mineralization, with first gold production expected in 2029.
The transaction adds a fifth asset to OceanaGold’s existing operations, which include the Haile Gold Mine in the United States, the Macraes and Waihi operations in New Zealand, and the 80%-owned Didipio Mine in the Philippines.
“This transaction delivers Ausgold shareholders a compelling upfront premium with the opportunity to retain exposure to the value we expect to unlock at Katanning as part of a larger, diversified and highly cash-generative gold producer,” said John Dorward, executive chairman of Ausgold.
The Ausgold board unanimously recommended shareholders vote in favor of the scheme. Major shareholder Dundee Corp., which holds approximately 7.7% of Ausgold shares, has also confirmed its intention to vote in favor.
The scheme requires approval from at least 75% of votes cast by Ausgold shareholders and a majority by number of shareholders present and voting. The transaction is subject to customary closing conditions, including approvals from the Australian Foreign Investment Review Board and the Toronto Stock Exchange.
OceanaGold has agreed to provide Ausgold with an A$20 million bridge loan in November 2026 to fund ordinary course expenditures prior to closing.
The scheme booklet is expected to be dispatched to Ausgold shareholders in October, with a shareholder meeting anticipated in late November. If approved, the transaction is expected to close in December 2026.
OceanaGold has appointed Jarden and BMO Capital Markets as financial advisors and Corrs Chambers Westgarth as legal advisor for the transaction.
