East Otago-based Oceana Gold has disengaged from Australian-listed Alacer Gold Corp over an unspecified business transaction, described as a takeover bid by Australian media.
Both Oceana and Alacer released separate market updates yesterday over ''potential corporate transactions'', saying they were no longer in discussions.
In a Street Talk opinion piece in the Australian Financial Review yesterday, it was claimed Oceana had attempted to engage with Alacer Gold, ''with plans to potentially create a new mid-market force and launch a takeover bid for the $A560 million company''.
Oceana's market update, noting the Australian Financial Review story, said it was confirming that since February 2014 it had made ''a number of approaches to Alacer seeking to explore the merits of a potential business combination''.
''To date Alacer has informed Oceana Gold that it is not willing to engage in discussions regarding a business combination or a mutual exchange of information with Oceana Gold,'' Oceana said.
Craigs Investment Partners broker Peter McIntyre said Oceana ''may have run the ruler'' over Alacer, and had a good line of credit, but the combination of the weak price of gold and any takeover offer was ''likely to test its balance sheet''.
Oceana has two open-pit gold mines in the South Island and one, including an underground operation, plus an almost 18-month-old gold and copper by-product mine, in the northern Philippines.
Alacer has a gold mine in Turkey, forecast to produce up to 180,000oz this calendar year.
Oceana's statement went on to confirm that it was ''not currently in discussions with Alacer'' over the terms of a transaction.
''Oceana Gold would only be willing to pursue a transaction with Alacer with the co-operation of the Alacer board and on terms which would add value to both sets of shareholders,'' Oceana said.
Alacer confirmed it had been approached by a third party ''on a preliminary basis regarding potential corporate transactions and the corporation was not currently involved in any third-party discussions''.
''Although approached from time to time by third parties, the corporation has no current intention of pursuing any corporate transaction,'' Alacer said.
