Oceana Gold to Acquire Waihi Gold Mine from Newmont...
While we wait for today's quarterly, here's a snippet from Oceana Gold's MDA...:
Newmont Letter of Intent
Subsequent to the quarter end, the Company has signed a non-binding Letter of Intent (“LOI”) with Newmont Mining Corporation (“Newmont”) to acquire Newmont’s Waihi Gold Mine (“Waihi”) in New Zealand for US$101 million in cash plus customary adjustments. Newmont will also retain a 1% Net Smelter Royalty for gold ounces mined from one specific exploration tenement capped at 300,000 ounces of production. The proposed transaction is subject to completion of comprehensive due diligence, execution of a definitive acquisition agreement, Board and regulatory approvals and other customary closing conditions.
The Waihi Gold Mine is a high-quality asset with first quartile AISC in a low-risk jurisdiction of which the Company has a strong understanding. The Waihi Mine has had a long, rich history of operations with Newmont’s world-class operating systems and over its 27 year history, the operation has successfully expanded its reserves. Waihi currently sits within a highly prospective goldfield representing significant upside potential that can be unlocked through resource drilling.
As part of the potential transaction, the Company has received highly confident letters from its banking syndicate to increase its revolving credit facility to US$225 million. The acquisition will be financed solely through cash and debt from this revolving credit facility.
Now who was that speculating about a tie-up between NTL and OGC....??