OceanaGold has agreed to acquire Ausgold in a transaction valuing the Australian gold developer at approximately A$776 million, or US$549 million, adding the Katanning Gold Project in Western Australia to its development portfolio. Under the definitive scheme implementation agreement, Ausgold shareholders will receive 0.03365 OceanaGold shares for each Ausgold share they hold. The consideration implies a value of A$1.36 per Ausgold share.
Ausgold shareholders can alternatively elect to receive cash, subject to a maximum aggregate cash pool of A$194 million, or approximately US$137 million.
Upon completion, Ausgold shareholders are expected to own approximately 6% to 8% of OceanaGold.
The transaction provides Ausgold shareholders with a 28% premium to the company’s last closing price and a 44% premium to its 20-day volume-weighted average price through August 14, 2026.
Katanning is a conventional open-pit development project expected to produce more than 100,000 ounces of gold annually over a potential mine life exceeding 10 years.
First gold production is expected in 2029.
The project is located approximately 275 kilometers southeast of Perth and gives OceanaGold its first acquisition in Australia.
Ausgold controls more than 3,000 square kilometers across the Katanning greenstone belt, providing additional exploration potential around the planned operation.
Ausgold’s December 2025 Definitive Feasibility Study outlined a conventional open-pit operation feeding a 3.6 million-tonne-per-year carbon-in-leach processing plant.
Estimated pre-production capital costs were A$355 million.
OceanaGold plans additional drilling through 2027 before publishing an updated technical report in 2028.
The company expects its balance sheet and projected free cash flow to fund Katanning while continuing development of existing projects, including Waihi North.
Ausgold had approximately A$87 million, or US$62 million, of cash and equivalents and no debt as of June 30, 2026.
OceanaGold has also agreed to provide an A$20 million bridge loan to Ausgold in November to fund ordinary-course expenditures before the transaction closes.
The Ausgold board has unanimously recommended the transaction, subject to customary qualifications, while major shareholder Dundee Corporation, which owns approximately 7.7% of Ausgold, has indicated its intention to support the deal.
The shareholder meeting is expected in late November, with completion targeted for December 2026.
Jarden and BMO Capital Markets are serving as financial advisors to OceanaGold, while Corrs Chambers Westgarth is serving as legal advisor.
KEY QUOTES:
“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.”
“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.”
Gerard Bond, President and Chief Executive Officer of OceanaGold
“This transaction delivers Ausgold shareholders a compelling upfront premium with the opportunity to retain exposure to the value we expect to unlock at Katanning as part of a larger, diversified and highly cash-generative gold producer.”
“OceanaGold’s financial strength, technical depth and operating track record significantly de-risk the funding and development of Katanning.”
John Dorward, Executive Chairman of Ausgold
