Independant reports have backed Oceana Gold's proposal to buy a South Carolina development gold mine - a scrip-only acquisition which could almost double the number of Oceana's shares on issue.
Target company Toronto-listed Romarco Minerals and Oceana put out a joint release yesterday saying Institutional Shareholder Services Inc and Glass Lewis & Co had recommended shareholders of both companies accept the offer.
Romarco has a market capitalisation of $C856million ($NZ996.9million).
The deal is entirely based on the issuing of new Oceana shares, which would rise from 303.5million on the market to 603million, but has the potential to dilute share value.
Oceana chief executive Mick Wilkes has previously forecast Oceana would be producing more than 540,000oz in 2017, when Romarco's Haile mine in South Carolina begins production, meaning 75% of its gold would come from combined New Zealand and US mines.
Romarco and Oceana shareholders will vote on the proposal on September 28, at meetings in Toronto and Vancouver.
