OceanaGold Corporation and Pacific Rim Mining have entered into a definitive agreement which will see OceanaGold acquire all of the issued and outstanding common shares of Pacific Rim. This will add the El Dorado Gold Project in El Salvador to OceanGold’s current assets in New Zealand and the Philippines.
El Dorado has a measured and indicated resource of more than 1.43 million ounces gold equivalent grading 10.4 grams/tonne gold equivalent and an inferred resource of 282,400 ounces gold equivalent grading 10.47 grams/tonne gold equivalent. There is also significant exploration upside potential.
The acquisition aligns well with OceanaGold’s strategy to invest in high quality, low cost assets and utilize its proven mine developing capabilities and experience to advance the El Dorado project. It also provides a first-mover advantage opportunity into a very prospective jurisdiction for precious metals.
Pacific Rim’s chairman Catherine McLeod-Seltzer says, “We are very pleased to have negotiated a transaction with OceanaGold that we believe reduces risk for our shareholders while providing them with continued participation in the high grade El Dorado Gold Project and the upside that comes with OceanaGold’s existing operations and forward trajectory.”
Pacific Rim’s president and CEO Tom Shrake says, “OceanaGold is a technically savvy and eminently capable mine-builder with a demonstrated long-range commitment to developing and operating mines in challenging environments with the utmost consideration for social and environmental stewardship. We believe OceanaGold is the perfect company to take the reins on behalf of our shareholders and are confident in their ability to bring the El Dorado Project to fruition.”
OceanaGold’s managing director and CEO Mick Wilkes says, “We believe this transaction will provide OceanaGold shareholders with potential exposure to a high grade gold-silver resource located in a very prospective region. This project has the potential to be an economic engine for El Salvador much like how our recently commissioned world-class Didipio Mine has been for northern Luzon in the Philippines.
“This transaction aligns well with our strategy to create value through investment in high quality, low cost assets and utilizing the OceanaGold’s experience in building and operating gold mines in an environmentally and socially sustainable manner.
“El Dorado further complements our high grade gold-copper Didipio Mine in the Philippines and we will look to replicate the successes we’ve achieved in New Zealand and the Philippines in El Salvador. OceanaGold looks forward to working with our local community and government partners in establishing a roadmap to unlock the opportunity at El Dorado for El Salvador.”
www.oceanagold.com or www.pacrim-mining.com