Oceana Gold has entered into discussions with unnamed parties which could lead to a merger or joint venture covering its $US320 million ($NZ431 million) Didipio gold and copper mine development in the northern Philippines.
In late June Oceana, whose present cash flow is from its Macraes open pit and underground mines in East Otago and an open pit near Reefton, on the West Coast, suspended development at Didipio as it sought to raise $US185 million ($NZ244 million), announcing at the time options could include a joint venture, merger or new share placement.
In a brief statement to markets yesterday, vice-president of investor relations, Darren Klinck said Oceana was "currently in discussions with various parties regarding strategic options" for the Didipio project which could include joint venture and/or merger opportunities.
In mid-May Oceana announced a blow-out of development costs at Didipio, saying its capital costs had more than doubled from $US155 million to $US320 million, a figure chief executive Steve Orr said at the time was "conservative".
However, he said Oceana had $US95 million in cash and he remained bullish about the potential for a 22% rate of return on the Didipio investment.
Other funding options included conventional and hybrid debt facilities, a share placement to present shareholders and the joint venture or merger opportunities, he said.
