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OceanaGold Enters Into $78.5 Million Gold Prepayment Arrangement
OceanaGold Enters Into $78.5 Million Gold Prepayment Arrangement Canada NewsWire ...
About this update from Oceanagold Corporation
[{"type":"text","content":"\n\n\n\nOceanaGold Enters Into $78.5 Million Gold Prepayment Arrangement\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMELBOURNE, Feb. 27, 2020\n\n\n\n/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./\n MELBOURNE, Feb. 27, 2020 /CNW/ - 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.\nMick 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 aligns 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.\" \n\"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.\" \nThe cash consideration for the advanced gold sale will be treated as deferred revenue to be amortised, and the revenue recognised, when the physical deliveries of gold occur. The cash consideration will be include...