OceanaGold has agreed to acquire Ausgold in a transaction valuing the Australian gold developer at approximately A$776 million, or $549 million, giving OceanaGold its first asset in Australia and adding a project with the potential to produce more than 100,000 ounces of gold annually. Ausgold owns the Katanning Gold Project in Western Australia.
Under the proposed transaction, Ausgold shareholders will receive 0.03365 OceanaGold shares for each Ausgold share, implying a value of A$1.36 per share.
Shareholders can alternatively elect cash consideration, subject to a maximum aggregate cash pool of A$194 million, approximately $137 million.
Following closing, Ausgold shareholders are expected to own approximately 6% to 8% of OceanaGold.
The offer represents a 28% premium to Ausgold’s most recent closing price and a 44% premium to its 20-day volume-weighted average price through August 14.
Katanning is a conventional open-pit development project located approximately 275 kilometers southeast of Perth.
OceanaGold sees the project as a potential fifth core asset alongside its existing producing mines in the U.S., New Zealand and the Philippines.
Katanning has the potential to produce more than 100,000 ounces of gold annually with a mine life exceeding 10 years, with first production currently expected in 2029.
Ausgold also controls more than 3,000 square kilometers across the Katanning greenstone belt, creating additional exploration potential beyond the planned mine.
A December 2025 definitive feasibility study outlined a potential 3.6 million-ton-per-year carbon-in-leach operation with estimated pre-production capital expenditures of A$355 million.
OceanaGold plans further drilling through 2027 and expects to publish an updated technical report during 2028 before the targeted 2029 first gold production.
The company has also agreed to provide Ausgold with an A$20 million bridge loan in November 2026 to support ordinary-course expenditures before closing.
Ausgold’s board unanimously supports the transaction, while major shareholder Dundee Corporation, which owns approximately 7.7%, has indicated its intention to vote in favor of the deal subject to stated conditions.
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 for the benefit of both OceanaGold and Ausgold shareholders.”
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
