PERTH (miningweekly.com) – Dual-listed OceanaGold has completed a plan of arrangement for TSX-listed Pacific Rim Mining, after the latter company’s shareholders voted in favour of the move.
Last month, OceanaGold announced its plans to acquire all the common shares of Pacific Rim by trading 0.04006 of a share for each Pacific Rim share held, resulting in Oceana issuing about 6.76-million new shares to Pacific Rim shareholders.
The offer valued Pacific Rim shares at C$0.06 each, representing a 50% premium over the 20-day volume-weighted average price of the company’s shares on the TSX, and a 73% premium to the closing price on October 7.
“I am very pleased to welcome Pacific Rim shareholders and employees to OceanaGold. I believe that our company strengths, developed over the past 20 years in New Zealand and the Philippines, provide for a strong platform to begin the successful journey with the many stakeholder groups in El Salvador,” said OceanaGold MD and CEO Mick Wilkes.
Pacific Rim’s El Dorado project, which has a measured and indicated resource of 1.43-million ounces of gold equivalent, grading 10.4 g/t, and an inferred resource of 282 400 oz gold equivalent, grading 10.47 g/t, would add an established high-grade gold/silver resource to OceanaGold’s portfolio, Wilkes said.
Along with the El Dorado project, Pacific Rim’s stable of exploration projects also provided the company with a first-mover advantage into an underexplored but prospective region, he added.
OceanaGold itself holds a number of mines in New Zealand and the Philippines, including the Didipio mine, where commercial production started in April this year.