OceanaGold said it will acquire Ausgold in an all-share and cash transaction valued at approximately A$776 million, representing a 22% premium to Ausgold’s closing price on Aug. 2.
The offer combines A$526 million in new OceanaGold shares and A$250 million in cash, subject to Ausgold shareholder approval and customary closing conditions. OceanaGold will issue 268.5 million new shares at A$1.96 each to fund the equity portion, based on its Aug. 2 closing price.
The deal bolsters OceanaGold’s presence in Australia, adding the flagship Brown’s Creek gold project in Western Australia. The project is advanced, with a 2023 feasibility study indicating probable reserves of 1.1 million ounces and an after-tax net present value of A$730 million at a A$2,400 per ounce gold price.
OceanaGold expects the acquisition to be immediately accretive to earnings per share and free cash flow, with integration expected to generate annual cost synergies of A$20–30 million within two years. The company plans to fund the cash portion through existing cash balances and debt facilities.
Ausgold shareholders will receive 0.376 OceanaGold shares and A$0.10 in cash for each Ausgold share held. The transaction is structured as a scheme of arrangement, requiring approval from Ausgold shareholders and the Australian Federal Court.
OceanaGold CEO Michael Holmes said the deal aligns with the company’s strategy to grow its Australian gold production and extend mine life at existing operations. The Brown’s Creek project is expected to contribute first production in 2027, supporting OceanaGold’s medium-term output target of 600,000–650,000 ounces annually.
The companies did not disclose any break fees or termination conditions beyond standard regulatory and shareholder approvals.
