OceanaGold gets approval to buy Waihi gold mining operation in New Zealand

15 October 2015 (Last Updated October 15th, 2015 18:30)

Australian firm OceanaGold has secured New Zealand's Overseas Investment Office (OIO) regulatory approval to acquire Newmont Mining's Waihi gold mining operation for $106m.

Australian firm OceanaGold has secured New Zealand's Overseas Investment Office (OIO) regulatory approval to acquire Newmont Mining's Waihi gold mining operation for $106m.

According to OceanaGold, the financial closing of the transaction is set to take place on 30 October.

As of 30 June, the Waihi combined open-pit and underground measured and indicated resources were estimated to be 1.52 Mt at 6.33g/t Au and 24.0g/t Ag containing 310koz of gold and 1,175koz of silver.

"The Waihi operation represents a strong strategic fit with our existing business and we are excited to welcome this high-quality asset."

OceanaGold managing director and CEO Mick Wilkes said following the receipt of regulatory approval, the company looks forward to integrating the operation into its business.

Wilkes said: "The Waihi operation represents a strong strategic fit with our existing business and we are excited to welcome this high-quality asset and its talented team into OceanaGold."

Under the deal announced in April, Newmont will retain a 1% net smelter royalty for gold ounces that are mined from one specific exploration tenement capped at 300,000oz of production.

Upon execution of the agreement, OceanaGold will acquire all of Waihi's open-pit and underground mining assets and liabilities.

The acquisition will also include all social, environmental and employee obligations of the mining operation.