OceanaGold Corporation has agreed to acquire Ausgold Limited under a binding Scheme Implementation Deed, shifting ownership of the flagship Katanning Gold Project in Western Australia into a combined international producer valued at approximately A$776 million on a fully diluted basis.

Under the transaction terms, Ausgold shareholders will receive 0.03365 new common shares in OceanaGold for each share held, representing an implied offer price of A$1.36 per share. This structure delivers an upfront premium of 28% over the target company's closing price of A$1.065 on August 14, 2026. Shareholders also retain the option to elect cash for up to 100% of their holdings through a cash alternative funded by a maximum cash pool of A$194 million, which represents 25% of the total equity value.

Upon implementation, OceanaGold will take 100% control of the developer and its assets. Existing OceanaGold investors will hold approximately 92.1% of the combined group, while Ausgold securityholders will own up to approximately 7.9%. The transaction transfers ownership of the Western Australian development asset, which carries Mineral Resources of 2.44Moz and Ore Reserves of 1.33Moz, alongside targeted average annual gold production of 120,000 ounces over a mine life exceeding 10 years.

“This is a highly attractive combination which we believe represents a compelling outcome for Ausgold shareholders, delivering an upfront premium while retaining ongoing exposure to the Katanning Gold Project as part of a larger, diversified OceanaGold gold and copper portfolio.” — John Dorward, Executive Chairman

The agreement materially alters the project’s funding and development pathway. Rather than pursuing standalone financing for the pre-production capital investment and construction ramp-up, the project will be backed by OceanaGold's balance sheet and operational cash flows generated from its four existing production centres in the United States, New Zealand, and the Philippines.

Ausgold previously acquired freehold properties, secured land access, and obtained mining leases to advance infrastructure at the site, alongside holding regional exploration targets including Katanning Regional, Kulin, Stanley, and Yandina. Project operator Ausgold Exploration Pty Ltd also staked two new mineral tenements near the main project area between June and July 2026.

“The acquisition of Ausgold adds an advanced, high-quality, low-capital, open-pit development asset to our portfolio at an attractive valuation. The Katanning Gold Project will be our fifth asset, located in one of the world's premier mining jurisdictions and is a natural fit with our proven development and operating capabilities. Our projected free cash flow generation and strong balance sheet give us the ability to fund the development of Katanning Gold Project, advance the world class Waihi North Project and our existing growth pipeline, while continuing to deliver meaningful capital returns to both Ausgold and OceanaGold shareholders.” — Gerard Bond, President and Chief Executive Officer

The arrangement is conditional on court and regulatory approvals, as well as an independent expert concluding that the scheme is in the best interests of securityholders. The Ausgold board has unanimously recommended the proposal in the absence of a superior proposal, with directors intending to vote their shares in favour. Major shareholder Dundee Corporation, holding approximately 7.7% of ordinary shares, has also confirmed its intention to support the scheme.

Securityholders are scheduled to vote on the scheme in upcoming meetings. Meanwhile, the development timeline maintains a target for a final investment decision by the end of 2026, with first gold production slated for mid-2028.

Read the full announcement: OceanaGold Agrees to Acquire Ausgold