off-the-wire

Canada's OceanaGold to buy Ausgold for about $553 million, expand Australia presence

Kitco Media
By Reuters
Published:
Updated:
Reuters
Canada's OceanaGold to buy Ausgold for about $553 million, expand Australia presence teaser image

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

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