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30/9/2015 — Gold
Romarco and OceanaGold shareholders agree to takeover
By Simon Hartley
Shareholders in in New Zealand's now only large gold miner OceanaGold Corporastion (TSX, ASX & NZX: have voted overwhelmingly in favour of buying the South Carolina gold development mine of Romarco Minerals Inc (TSX: R).
The script-only buy-out of Romarco means the number of OceanaGold shares on issue will almost double to 603 million, with the market closely watching for any share dilution in the future.
In what OceanaGold's chief executive Mick Wilkes has described in the past as “the new OceanaGold,” shareholders of the two Toronto-listed companies voted yesterday, separately, in favour of the amalgamation.
The arrangement was approved by 79.67% of votes cast by Romarco shareholders with represented 81.7% of shares capable of being voted while the resolution was approved by 99.77% of votes cast by OceanaGold shareholders, representing 64.19% of shares capable of being voted.
Under the arrangement Romarco shareholders will receive 0.241 of an OceanaGold common share for each Romarco share held.
Romarco had a market capitalisation of $NZ996.9 M, at the time of the offer, plus $C254 M ($NZ300.7 M) cash in hand.
OceanaGold expects that once the Haile gold mine in South Carolina gets into production, the company will be producing more than 540,000 ounces gold in calendar 2017. For calendar 2015, the company expects to produce between 295,000 oz and 335,000 oz.
Wilkes said with support from Oceana's strong balance sheet, plus its development and operating expertise, would bring the Haile Gold mine in Lancaster County, South Carolina through the construction period and into production.
It would further diversify OceanaGold's global production profile and cement it “as a low cost gold producer globally,”
“Through our transaction with Romarco and with the addition of the Haile gold mine, OceanaGold will enhance its already solid foundation of high margin, high quality operating assets,” Wilkes added.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.
The plot of OGC's shareprice on the TSX against the gold price shows a definite swing down over the last few days. Could be that dilution they're talking about.