OceanaGold completes acquisition of Waihi gold mine from Newmont Mining

Image credit: twitter.com/OceanaGold

Multinational gold producer OceanaGold has completed the acquisition of the Waihi gold mine from Newmont Mining Corporation for cash proceeds of US$101 million.

Image credit: twitter.com/OceanaGold
Image credit: twitter.com/OceanaGold

The completion of the sale agreement – which also includes a US$5 million contingent payment and a 1% Net Smelter Royalty on a recent discovery north of Waihi’s current operation – follows the regulatory approval from New Zealand’s Overseas Investment Office (OIO).

OceanaGold Managing Director & CEO Mick Wilkes, said he was excited to add the new acquisition to the company’s group of high quality assets.

“This year has been an exciting one for our business with the addition of the Haile gold mine and the Waihi gold mine into our portfolio,” Mr Wilkes said.

“We now look forward to fully integrating the Waihi operation and its experienced workforce into our business and unlocking significant value from this asset.”

Located approximately 150 kilometers southeast of Auckland in New Zealand, Waihi produced approximately 132,000 ounces of gold in 2014.

Randy Engel, Newmont’s Executive Vice President for Strategic Development, said the sale of Waihi was in line with the company’s strategy to offload certain assets and improve its financial position and cash flow.

“The sale of Waihi further strengthens Newmont’s balance sheet and improves the company’s financial flexibility as we continue to sell select assets for cash at fair value,” Mr Engel said.