OceanaGold Corporation has now signed a definitive acquisition agreement with Newmont Mining Corporation for the purchase of the Waihi Gold Mine.

Announced recently, the terms of sale include purchasing Newmont Waihi Gold Limited for US$101 million (NZD $143m) in cash plus a US$5m (NZD$7m) contingent payment.

A definitive acquisition agreement has now been signed by OceanaGold Corporation to purchase the Waihi Gold Mine from Newmont Mining Corporation. Photo: File

Newmont will also retain a one per cent net smelter royalty for gold ounces produced from one specific exploration tenement separate to the mine, capped at 300,000 ounces of production.

Approvals have now been secured from each company's board, and closing of the deal is anticipated in the third quarter of this year.

This will follow satisfaction of all conditions precedent and receipt of the necessary regulatory approvals.

OceanaGold Managing Director and CEO Mick Wilkes says they are pleased to announce this significant milestone.

'We are excited to integrate the Waihi operations and its experienced workforce into OceanaGold,” says Mick. 'Waihi represents a unique opportunity for us to acquire a high-quality asset that has demonstrated the propensity to extend mine life for more than two decades in what is still a very prospective, high-quality goldfield.

'This proposed acquisition is accretive to shareholders, grows our production profile and importantly will further reduce our industry leading All-In Sustaining Cost profile.”

OceanaGold will take ownership of Newmont Waihi Gold Limited from July 1, 2015, subject to legal closing occurring.

The proposed acquisition is subject to New Zealand regulatory conditions, with expected legal closing in the third quarter of 2015.

Newmont Strategic Development Executive Vice President Randy Engel says the sale of Waihi 'further strengthens Newmont's balance sheet and improves our financial flexibility as we continue to sell select assets for cash at fair value.”