Canada's OceanaGold to buy Ausgold for about $553 million, expand Australia presence
Canada's OceanaGold to buy Ausgold for about $553 million, expand Australia presence 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)
((Sathvi.GBhat@thomsonreuters.com))
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