Citigroup (NYSE:C), Macquarie Acquiring OceanaGold (TSE:OGC), Shares, Warrants

In an effort to raise $152 million, OceanaGold (TSE:OGC), which is NZX-listed, is offering a private placement, with Citigroup Global Markets Canada (NYSE:C) and Macquarie Capital Markets Canada underwriting the placement, agreeing to acquire special warrants and common shares in OceanaGold for C$3.50 each.

The purpose is to fund its gold and copper mine in the Philippines, while also expanding its gold mines in New Zealand.

A trading halt has been placed on OceanaGold, which is listed on, along with the New Zealand exchange, on the Australian and Toronto exchanges as well.

Other funding is being considered for its Didipio project in the Philippines, as this funding is targeted for the Reefton and Macraes gold mines.

The offering has a closing date of October 20.

Oceana Gold (TSE:OGC) Closes Hedge Book

Oceana Gold closing hedge book

Oceana Gold (TSE:OGC), like its competitors, has closed its hedge book, signaling their belief a stronger gold price is here to stay for some time.

After closing its hedge book this week, Oceana will generate around $2 million in free cash flow a week, assuming gold prices will stay at $1,100 or above; which is definitely has a good chance of doing, as evidenced by finding support in a very difficult economic environment in Europe, where the sovereign debt crisis weakened the euro and strengthened the U.S. dollar, putting downward pressure on gold prices.

Chief operating officer, Mark Cadzow, said, "Oceana is now in a position to present itself as an unhedged gold producer, and a significant one at that, at a time when gold is pretty strong and people are still looking for a safe haven."