OceanaGold (OGC) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Ausgold and its Katanning Gold Project adds a high-quality, low-capital, open-pit gold asset in Western Australia, expanding the portfolio in a Tier-1 jurisdiction and enhancing geographic diversification.

• Katanning is expected to produce over 100,000 ounces of gold annually for at least 10 years, with first gold targeted for 2029.

• The project offers significant district-scale exploration upside with over 3,000 km² of largely underexplored land.

• Leverages existing technical and operational expertise in Australia to optimize and de-risk development.

• Diversifies the asset base to five key projects in top mining jurisdictions, leveraging an established technical team.

Financial terms and conditions

• Total transaction equity value is A$776 million (US$549 million), with Ausgold shareholders receiving 0.03365 OceanaGold shares per Ausgold share, valued at A$1.36 per share.

• Cash alternative available, capped at A$194 million (US$137 million) in aggregate.

• OceanaGold to provide a A$20 million bridge loan to Ausgold prior to closing.

• Ausgold shareholders will own approximately 6%-8% of the combined entity post-closing.

• Transaction funded entirely from existing cash and liquidity, preserving a debt-free balance sheet.

Synergies and expected cost savings

• Transaction is expected to be accretive to net asset value, cash flow, and earnings per share once Katanning is in commercial production.

• Leverages OceanaGold's financial strength and technical depth to de-risk funding and development.

• Enables continued investment in organic growth, exploration, and shareholder returns without stretching resources.