OceanaGold Corp. (TSX:ASX) has signed a non-binding letter of intent to buy the Waihi Gold Mine in New Zealand from Newmont Mining Corp (NYSE:NEM) for US$101 million in cash.
Under terms of the proposed deal, Newmont would retain a one per cent net smelter royalty from one specific exploration tenement capped at 300,000 ounces of gold production.
"We have long believed that Waihi represents a strong strategic fit within OceanaGold," managing director and CEO Mick Wilkes said in a statement issued Wednesday after markets closed.
"We are excited about the prospect of acquiring it and welcoming its experienced workforce to our team."
Oceana, with headquarters in Australia and mines on New Zealand's South Island and in the Philippines, says it will fund the purchase from the US$59.6 million it has in cash and from revolving credit facilities.
This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.