GRD Sells 50% Interest in OceanaGold

Perth-based GRD Ltd, the majority shareholder in Oceana Gold Ltd has sold out nearly all of its shares in the New Zealand gold producer.

GRD has sold 180 million shares or 50% of Melbourne-headquartered Oceana Gold leaving GRD with a residual 6.9% of the shares.

The OceanaGold shares were sold to institutional investors via an institutional bookbuild with Macquarie Bank at 81c a share.

Oceana Gold chief executive Stephen Orr welcomed the sale, saying it would give the company greater flexibility to react to growth opportunities.

Mr Orr said 71% of the former GRD shares went to institutions in Europe, Asia and the United States. The remaining 29% was bought by Australian institutions.

The sale increased Oceana's free float from 43% to more than 90%, and should improve the liquidity of trading in OceanaGold shares, he said.

OceanaGold's assets include the Macraes goldfield in Otago, and the Globe Progress project near Reefton on the West Coast.

GRD's OceanaGold stake has been under review since last September when GRD won the Lancashire waste project in the United Kingdom. It was keen to quit the mining sector in favour of its new interest in synthetic gas production from green waste.

Brett Fogarty and Patrick O’Connor both resigned as directors of Oceana Gold at the recent annual meeting of the company. Cliff Lawrenson, CEO of GRD, has joined the OceanaGold board.

Meanwhile OceanaGold has announced the appointment of Michael Roache to the position of corporate exploration manager. Mr Roache is a geologist with over 22 years experience in the mining industry previously holding senior exploration and development roles with AngloGold and Delta Gold. He will be responsible for the development and execution of Oceana Gold's exploration strategy and will have primary responsibility for new project generation beyond New Zealand.