OceanaGold Raises Extra $10m for New Developments

OceanaGold has raised an additional A$10 million to help fund the development of both the Frasers underground mine at Macraes and the Globe Progress surface mine at Reefton.

The Melbourne-based New Zealand gold company said the money is being raised throughBarclays Bank exercising an option to purchase A$10m of convertible notes. An application has been made to list the bonds on the Singapore stock exchange.

The infrastructure required for the development of the Globe Progress project is virtually complete and the mine is scheduled to be commissioned in the fourth quarter of 2006 with initial production of 70,000 oz a year.

The Frasers underground development will be started in April 2006, through a decline from the Frasers open pit. This is to facilitate initial trial mining prior to full-scale production. Trial mining at Frasers underground is scheduled to commence in the fourth quarter of 2006, with full scale production commissioned in the fourth quarter of 2007.

OceanaGold also announced that Patrick O’Connor, a former CEO, has resigned as a director. Cliff Lawrenson, managing director of Global Renewables, who also has responsibility for all development activities within the GRD Group, will join the OceanaGold board.