OceanaGold (OGC.TO) has agreed to acquire 100% of Ausgold, which owns the Katanning Gold Project in Western Australia, in a transaction with a total equity value of A$776 million, the company said Monday.
Ausgold shareholders stand to receive 0.03365 common shares of OceanaGold for each Ausgold share held, implying a total offer value of A$1.36 per Ausgold share. Ausgold shareholders may also elect to receive the consideration value in cash.
The Ausgold board unanimously recommended that shareholders approve the deal. Ausgold major shareholder Dundee (DC-A.TO), which holds a 7.7% stake, has confirmed that it will vote in favor of the deal.
The deal is scheduled to close in December, subject to shareholder approval and other conditions.