OceanaGold Announces Sale of the Blackwater Project for US$30M

Rhea-AI Summary

OceanaGold Corporation announces the execution of a Sale and Purchase Agreement with Tasman Mining Limited to acquire OceanaGold's interest in the Blackwater project in New Zealand. The agreement includes a cash payment of US$30 million upon closing of the transaction, subject to regulatory approval and expected to close in 2024.

VANCOUVER, BC, Jan. 31, 2024 /PRNewswire/ - OceanaGold Corporation (TSX: OGC) (OTCQX: OCANF) ("OceanaGold" or the "Company") is pleased to announce the execution of a Sale and Purchase Agreement ("SPA") with Tasman Mining Limited ("Tasman"), a wholly owned subsidiary of Federation Mining Inc. ("Federation"), to acquire OceanaGold's interest in the Blackwater project in New Zealand. The execution of the SPA follows the receipt of formal notice from Tasman to exercise its exclusive option on Blackwater, which has been held under a Project Deed since July 2018.

Under the terms of the SPA, OceanaGold is to receive US$30 million in cash upon closing of the transaction. The SPA is subject to a number of conditions including regulatory approval and is expected to close in 2024.  For further details and background on the Blackwater option see the Company's most recent AIF (Section 11.4 Other Projects).  

About OceanaGold

OceanaGold is a growing intermediate gold and copper producer committed to safely and responsibly maximizing the generation of Free Cash Flow from our operations and delivering strong returns for our shareholders. We have a portfolio of four operating mines: the Haile Gold Mine in the United States of America; Didipio Mine in the Philippines; and the Macraes and Waihi operations in New Zealand.

 

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SOURCE OceanaGold Corporation

FAQ

What is the Sale and Purchase Agreement about?

The Sale and Purchase Agreement is for the acquisition of OceanaGold's interest in the Blackwater project in New Zealand by Tasman Mining Limited.

What is the cash payment involved in the agreement?

OceanaGold is set to receive US$30 million in cash upon closing of the transaction.

When is the expected closing date of the transaction?

The transaction is expected to close in 2024, subject to regulatory approval.

Who is the subsidiary of Federation Mining Inc. involved in the agreement?

Tasman Mining Limited, a wholly owned subsidiary of Federation Mining Inc., is involved in the agreement.