Australian-Canadian miner OceanaGold Corp has announced plans to acquire Romarco Minerals Inc. for around $856 million.
With the acquisition, OceanaGold will get its hands on the low-cost Haile Gold project in South Carolina. The open-pit mine is expected to produce around 540,000 ounces of gold a year by 2017 at an all-in sustaining cost of less than $600 an ounce.
“We are very pleased to bring this transaction forward to the benefit of both sets of our valued shareholders. OceanaGold has remained disciplined in its growth initiatives while building and preserving a robust balance sheet and positioning the company for the value-creating opportunities that complement our existing portfolio of high-quality assets,” said Mick Wilkes, Managing Director & CEO of OceanaGold.
“We believe the addition of the low-cost, long-life Haile Gold Mine provides such an opportunity while underpinning an industry leading business. The combination of the sector low cost profile with 3 significant free cash flow generation, diversified production and a pipeline of organic growth opportunities forms the lowest cost gold producer globally. We are aligned with Romarco in our philosophy towards social responsibility and therefore, see this important attribute as another good fit for our company.”
According to Diane Garrett, President & CEO of Romarco, the transaction with OceanaGold represents a logical business combination that will create a premier intermediate gold producer with a diversified asset base.
“We are confident that our shareholders will benefit from the value-creating opportunities that will be realised through an expanded and diversified asset base and enhanced cash flow generating capabilities. Importantly, we believe OceanaGold has the same philosophy to social responsibility as our own,” she said.