Oceanagold Enters into $78.5 Million GOLD Prepayment Arrangement
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MEDIA RELEASE
27 February 2020
OCEANAGOLD ENTERS INTO $78.5 MILLION GOLD PREPAYMENT
ARRANGEMENT
(MELBOURNE) OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the “Company”) is pleased to announce
that it has entered into a forward gold sale arrangement with the support of members of the Company’s
current banking group whereby the Company will receive a pre -payment of $78.5 million (approximately
$1,635 per ounce) on February 28, 2020, in exchange for delivering 48,000 gold ounces between September
and December 2020. The advanced gold ounces sold represents just over 30% of expected gold production
across that period and 13% of the Company’s total 2020 full year production.
Mick Wilkes, President and CEO of OceanaGold said, “We expect our annual gold production to be stronger
in the second half of the year, particularly at Haile where we expect two -thirds of the gold output from the
operation in the second half of the year. The presale of future gold production more effectively a ligns our
second half weighted 2020 operating cash flow profile with the short-term requirement to continue advancing
key organic growth projects within our portfolio such as the Martha Underground project and Haile expansion
whilst also managing the ongoing uncertainty around Didipio.”
“While we do not anticipate utilising gold prepayment arrangements as a standard practice going forward, it
is an attractive option at today’s high gold prices that mitigates the need for any material refinance of debt or
equity issuance. We will continue to take prudent steps that ensure our operating cash flow matches and
supports the critical timelines associated with our growth projects.”
The cash consideration for the advanced gold sale will be treated as deferred revenue to be amorti sed, and
the revenue recognised, when the physical deliveries of gold occur. The cash consideration will be included
in operating cash flow for the first quarter of 2020 . The Company effected the gold advanced sales
arrangement through Scotia Bank, Commonwealth Bank, Citibank and BNP Paribas.
Additionally, on February 26, 2020, the Company sold 39,946,161 common shares it previously held in Gold
Standard Ventures Corp (“GSV”), which has its head office at Suite 610, 815 West Has tings Street,
Vancouver, BC V6C 1B4, for C$0.8 2 per share, for aggregate gross proceeds of approximately C$32 .7
million. The sale took place through a private off-market sale via a block transaction.
Prior to such sale, the Company indirectly owned and controlled 40,459,161 common shares of GSV, being
approximately 14.6% of the outstanding common shares. Following such sale, the Company indirectly owns
and controls 513,000 common shares of GSV, being 0.2% of the outstanding common shares.
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The proceeds from the sale will be used for working capital purposes to better align cash flows of the business
with expenditures. The Company may, depending on the market and other conditions, increase or decrease
its beneficial ownership of the GSV securities, whether in the open market, by privately negotiated
agreements or otherwise, subject to a number of factors, inc luding general market conditions and other
available investment and business opportunities.
- ENDS -
Authorised for release to market by OceanaGold Corporate Company Secretary, Liang Tang.
For further information please contact:
Investor Relations Media Relations
Sam Pazuki
Tel: +1 720 602 4880
Melissa Bowerman
Tel: +61 407 783 270
www.oceanagold.com | Twitter: @OceanaGold
About OceanaGold
OceanaGold Corporation is a mid -tier, high-margin, multinational gold producer with assets located in the
Philippines, New Zealand and the United States. The Company’s assets encompass the Didipio Gold-Copper
Mine located on the island of Luzon in the Phil ippines. On the North Island of New Zealand, the Company
operates the high-grade Waihi Gold Mine while on the South Island of New Zealand, the Company operates
the largest gold mine in the country at the Macraes Goldfield which is made up of a series of op en pit mines
and the Frasers underground mine. In the United States, the Company operates the Haile Gold Mine, a top-
tier, long-life, high-margin asset located in South Carolina. OceanaGold also has a significant pipeline of
organic growth and exploration opportunities in the Americas and Asia-Pacific regions.
OceanaGold has operated sustainably since 1990 with a proven track-record for environmental management
and community and social engagement. The Company has a strong social license to operate and work s
collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build
capacity and not dependency.
For 2020, the Company expects to produce between 360,000 and 380,000 ounces of gold from Haile, Waihi
and Macraes combined at a consolidated All -In Sustaining Costs ranging from $1,075 to $1,125 per ounce
sold.
About GSV Share Sale
The disclosure in this press release relating to the sale of common shares of GSV is issued pursuant to
Multilateral Instrument 62-104, which also requires an early warning report to be filed containing additional
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information with respect to the foregoing matters. A copy of the early warning report will be available on
SEDAR under GSV’s issuer profile at www.sedar.com and may be obtained upon request from the Company
by contacting the Company at the below contract information.
Cautionary Statement for Public Release
Certain information contained in this public release may be deemed “forward -looking” within the meaning of
applicable securi ties laws. Forward -looking statements and information relate to future performance and
reflect the Company’s expectations regarding the generation of free cash flow, execution of business
strategy, future growth, future production, estimated costs, results of operations, business prospects and
opportunities of OceanaGold Corporation and its related subsidiaries. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or
future events or performance (often, but not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are
not statements of historical fact and may be forward -looking statements. Forward -looking statements are
subject to a variety of risks and uncertainties which could cause act ual events or results to differ materially
from those expressed in the forward -looking statements and information. They include, among others, the
accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks and
those risk factors identified in the Company’s most recent Annual Information Form prepared and filed with
securities regulators which is available on SEDAR at www.sedar.com under the Company’s name. There are
no assurances the Company can fulfil forward -looking statements and information. Such forward -looking
statements and information are only predictions based on current information available to management as
of the date that such predictions are made; actual events or results may differ materially as a result of risks
facing the Company, some of which are beyond the Company's control. Although the Company believes
that any forward-looking statements and information contained in this press release is based on reasonable
assumptions, readers cannot be assured that actual outcomes or results will be consistent with such
statements. Accordingly, readers should not place undue reliance on forward -looking statements and
information. The Company expressly disclaims a ny intention or obligation to update or revise any forward -
looking statements and information, whether as a result of new information, events or otherwise, except as
required by applicable securities laws. The information contained in this release is not investment or financial
product advice.
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