Oceanagold And Climax Mining Merger Creates A Globally Significant Gold Company
The Directors of Oceana Gold Limited and Climax Mining Limited are pleased to announce the successful completion of
their merger. At the Climax Mining Share and Option Scheme Meetings on Monday 30 October 2006, over 99% of the votes
cast by shareholders and option holders were in support of the merger. “This is an outstanding result which indicates
the level of support our shareholders have in OceanaGold’s growth strategy.” commented Stephen Orr.
At the meeting of the Board today, the following Directors have been appointed to the new OceanaGold: • James Askew – Chairman • Kerry McDonald – Vice Chairman • Denham Shale – Independent Director • Terry Fern –
Independent Director • Antenor Silva – Independent Director • Stephen Orr – CEO and Executive Director
Director’ biographies are attached as Appendix I.
Former Director, Bruce Thomas will be leaving the OceanaGold Board to pursue other opportunities. The Board thanks him
for his service and contributions.
The merged entity, listed on the ASX and NZX as OceanaGold, has a market capitalisation of $480million (based on a 73
cent share price) and forecast gold production of +550,000 AuE ounces by the end of 2008.
“The merger is consistent with OceanaGold’s growth strategy and delivers a leading Pacific Rim gold mining company with
a diverse portfolio of development and exploration projects in New Zealand and the Philippines”, Stephen Orr said.
Key highlights of the merged entity include: • Increased scale - Reserve of 4.8 million ounces Au Eq • Increased financial strength - Greater global interest and increased liquidity - An expected 12 per cent gearing on the balance sheet • Increased diversification - An established presence in New Zealand, Australia and the Philippines - A portfolio of high quality exploration,
development and production assets - Multiple operating mines to provide greater performance consistency - Revenue from
gold, copper and silver • Unique exploration position - Dominant control of the mineralogically prospective Reefton and Macraes Goldfields in New Zealand - One of the largest
high quality gold-copper exploration portfolios in the Philippines
OceanaGold will be led by a strong and focussed management team with a successful track record in international project
development and low cost mining, including: • Chief Executive Officer - Stephen Orr ( former OceanaGold CEO) • Chief Financial Officer – Brian Kinsella • Chief
Development Officer - Albert Brantley • Vice President Corporate Exploration – Mike Roache • Vice President New Zealand
Operations - John Kinyon • Vice President Corporate Technical Services – Mark Cadzow
“The new OceanaGold will have one of the strongest development and exploration portfolios of any mid-cap gold company
and over the next three years, we will build and commission three new mines that will increase our gold production from
180 thousand ounces per annum to over 550 thousand gold equivalent ounces per annum.” said Mr Orr. “We have increased
our exploration expenditures to comprehensively explore the entire Reefton and Macraes Goldfields and are confident that
we will discover additional reserves.” “We have acquired one of the most comprehensive exploration portfolios in the
Philippines and will devote A$6 to A$7 million per year to exploration for new gold deposits.”
“To ensure that we deliver value, we will maintain the Didipio project schedule that we have already been managing
under contract to the Climax Board and we have spent the period during the merger developing a detailed Philippine and
New Zealand exploration plan that will start in early 2007.” he said.