Romarco’s principal asset is the Haile Gold Mine located in South Carolina, United States, which is a high-grade open pit project that is currently in construction and represents one of the premier gold development assets globally.
The combination of OceanaGold and Romarco is expected to create the lowest cost gold producer in the market; propelled by a long reserve life, a portfolio of high quality assets that generate significant free cash flow and a solid pipeline of organic growth opportunities.
Under the terms of the Agreement, Romarco shareholders will receive 0.241 of an OceanaGold common share for each Romarco common share, representing the equivalent of C$0.68 per Romarco Share and a premium of 72.7% based on the July 29, 2015 closing prices of OceanaGold and Romarco on the TSX and 71.8% based on the 30-day volume-weighted average price of the OceanaGold Shares and the Romarco Shares on the Toronto Stock Exchange as of July 29, 2015.
The Exchange Ratio implies a total equity value of approximately C$856 million on a fully-diluted in the money basis. In addition, each option to purchase a Romarco Share will be exchanged for a replacement option to purchase OceanaGold shares adjusted based upon the Exchange Ratio.
Upon completion of the Arrangement, existing OceanaGold and Romarco shareholders will own approximately 51% and 49% of the combined company, respectively.
