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OceanaGold to buy Romarco for $660 million OceanaGold will pay 0.241 of its shares for every one in Romarco.OceanaGold to buy Romarco for $660 million OceanaGold will pay 0.241 of its shares for every one in Romarco. Thomas Biesheuvel (Bloomberg) | 30 July 2015 11:44 A fifty and a five dollar Australian bill are pictured in New York on March 2, 2005. Photographer: Daniel Acker/Bloomberg News. OceanaGold Corp. agreed to buy Romarco Minerals Inc. in a deal worth C$856 million ($660 million) to gain control of its bullion project in South Carolina. OceanaGold will pay 0.241 of its shares for every one in Romarco, the Melbourne-based company said in a statement on Thursday. That values each Romarco share at C$0.68, a 73 percent premium on the July 29 closing price, OceanaGold said. A decline in the gold price, which last week fell to the lowest since February 2010, is spurring deals after asset valuations tumbled. OceanaGold said in April it was seeking to buy more assets after agreeing to pay $101 million for Newmont Mining Corp.’s Waihi mine in New Zealand. After completion, OceanaGold shareholders will own about 51 percent and Romarco investors about 49 percent. Adding the Haile mine, which is targeting first production in 2017, will boost the combined company’s annual gold output to about 540,000 ounces. |
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