OceanaGold in talks with potential investors in Didipio

Thursday 24th July 2008

OceanaGold Corp. said it is in talks with potential investors to help fund its Didipio gold and copper project in the northern Philippines.

The company needs about US$185 million in cash towards the US$320 million capital cost of the mining project that has drawn complaints from human rights groups and has been hit by escalating costs.

OceanaGold is considering joint venture or merger opportunities, as well as the sale of debt or hybrid securities, chief executive Steve Orr said last month. The company on June 25 said it had delayed or temporarily suspended a number of contracts pending additional funding, which would delay completion of the development.

"The Company is currently in discussions with various parties regarding strategic options for the Didipio project," Darren Klinck, investor relations manager, said in a statement today. "These options include joint venture and/or merger opportunities."

Shares of OceanaGold, which operates New Zealand's biggest goldmine, Macraes, were unchanged at NZ$1.10 on the NZX.

Orr last month said Didpio still had a "robust" 22% prospective rate of return, based on a gold price of US$800 an ounce and copper at US$3.50 a pound.

By Jonathan Underhill

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