OceanaGold seals New Zealand’s Waihi gold mine acquisition

29 October 2015 (Last Updated October 29th, 2015 18:30)

OceanaGold has completed the acquisition of the Waihi gold mine in New Zealand from Newmont Mining for $106m.

OceanaGold has completed the acquisition of the Waihi gold mine in New Zealand from Newmont Mining for $106m.

Completion of the deal follows regulatory approval recently obtained by the company from New Zealand's Overseas Investment Office (OIO).

According to Newmont, the sale agreement also includes a contingent payment of $5m and a 1% net smelter royalty on a recent discovery, north of the existing Waihi operations.

"The sale of Waihi further strengthens Newmont's balance sheet and improves the company's financial flexibility."

OceanaGold managing director and CEO Mick Wilkes said: "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."

Following the acquisition, the company now plans to focus on developing collaborative relationships with local stakeholders.

Newmont Mining strategic development executive vice-president Randy Engel said: "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."

Gold was first discovered and mined at Waihi in 1878. It produced approximately 132,000oz of gold in 2014.

Located 150km south-east of Auckland, the mine has combined open-pit and underground measured and indicated resources of 1.52Mt at 6.33g/t Au and 24.0g/t Ag containing 310koz of gold and 1,175koz of silver as of 30 June.