OceanaGold Corp. has entered into a definitive agreement to acquire 100 per cent of Ausgold Ltd. in a deal valuing the target’s equity at approximately AU$776 million.
Under the terms of the transaction, Ausgold shareholders will receive 0.03365 OceanaGold shares for every Ausgold share held, representing an implied offer value of AU$1.36 per share.
Ausgold investors will also have the option to elect for a cash consideration, subject to scale-back within a maximum total cash pool capped at AU$194 million. Upon implementation, existing Ausgold shareholders are expected to hold between 6 per cent and 8 per cent of OceanaGold.
The takeover hands OceanaGold full ownership of the flagship Katanning Gold Project, situated 275 kilometres south-east of Perth.
Katanning is an advanced, conventional open-pit development asset spanning a 3,000-square-kilometre landholding across the underexplored Katanning greenstone belt.
An updated definitive feasibility study completed in late 2025 outlined a 3.6 million tonne per annum processing plant with a pre-production capital expenditure estimate of $355 million, targeting annual production exceeding 100,000 ounces over a 10-plus year mine life.
OceanaGold plans to conduct further exploration drilling through 2027 to de-risk operations before releasing an updated technical report in 2028, aiming for first gold production in 2029.
“The acquisition of Ausgold adds an advanced, high-quality, low-capital, open-pit development asset to our portfolio at an attractive valuation,” said Gerard Bond, President and CEO of OceanaGold.
“This marks our first acquisition in Australia.”
The Ausgold board has unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal. Major shareholder Dundee Corporation, holding a 7.7 per cent stake, has also confirmed its intention to support the deal.
John Dorward, Executive Chairman of Ausgold, said the transaction gives Ausgold shareholders a compelling premium with continued exposure to Katanning.
“OceanaGold’s financial strength, technical depth and operating track record significantly de-risk the funding and development of Katanning, while our shareholders gain immediate diversification and exposure to a high-quality growth profile which will include Katanning and the world-class Waihi North Project,” Dorward said.
The transaction remains subject to court approval, FIRB clearance, and an Ausgold shareholder vote scheduled for late November, with final implementation targeted for December.
