OceanaGold funds Philippines project through TSX

OceanaGold (OGC-T) has completed a $90-million initial public offering on the Toronto Stock Exchange with net proceeds going towards the development of the Didipio gold-copper project in northern Luzon, the Philippines.

The company, which also has operations on the South Island of New Zealand, has been listed on the Australian and the New Zealand stock exchanges since March 2004.

This is one more step to positioning the company for continued long-term and profitable growth, said OceanaGold CEO, Stephen Orr in a statement.

The Didipio gold-copper project has an underground reserve of 18.1 million tonnes grading 2.1 grams gold per tonne and 0.54% copper while open pit reserves are at 14.3 million tonnes grading 0.9 grams gold per tonne and 0.64% copper.

The mine is projected to produce an average of 142,000 oz. gold and 15,000 tonnes copper-in-concentrate per year over 10 years.

Commissioning of the mine is expected by early 2009.

OceanaGold recently brought the Globe Progress Mine at its Reefton Gold project in New Zealand into production and says its on track to bring its Frasers underground mine into production by early 2008.

The companys main asset is the McCraes mine, which is the largest gold mine in New Zealand, and produces 180,000 oz. gold per year.

OceanaGold plans to produce 500,000 gold equivalent oz. per year by 2009.

For its IPO on the TSX, OceanaGold issued 25,715,000 shares at $3.50 each. The underwriters, led by BMO Capital Markets, have been granted an option to purchase an additional 3.9 million shares at $3.50 each for 30 days following the closing of the offering.