OceanaGold (TSE: OGC) has announced its agreement to acquire Ausgold Limited, owner of the Katanning Gold Project in Western Australia, for $549 million. This acquisition will add a fifth asset to OceanaGold’s portfolio, with the Katanning Project expected to produce over 100,000 ounces of gold annually during its initial 10-year mine life, aiming for first gold in 2029.
The acquisition will be executed through a court-approved scheme of arrangement, allowing Ausgold shareholders to receive OceanaGold shares or cash (up to $137 million cap). The transaction, supported by Ausgold’s board and major shareholder Dundee Corporation, remains subject to customary conditions and is anticipated to close in December 2026. OceanaGold currently holds $655 million in cash with no debt and projects total cash holdings of $2.1 billion by the end of 2029.
Katanning, located approximately 275 kilometers southeast of Perth, is positioned to leverage established infrastructure and has begun an exploration program involving a 54,000-meter drilling campaign. OceanaGold is advancing development efforts and has initiated site preparations, aligning with a strategic timeline to publish a technical report by 2028 and make a final investment decision that same year.
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