/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
DISTRIBUTION TO US NEWSWIRE SERVICES./
MELBOURNE, Australia, July 25, 2012 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the "Company") wishes to provide an update regarding the recently
signed Executive Order 79 by President Benigno S. Aquino III of the
Philippines in regards to mining sector reform. The Executive Order
lays the foundation for the policy framework which will guide
stakeholders and the Philippines Government in the implementation of
mining laws, rules and regulations for responsible, sustainable and
equitable mining. It is a result of consultation from various
stakeholders including environmental groups, church groups, Philippines
Government agencies, mining and mining services companies.
Key factors under Executive Order 79:
The Government shall rationalise the existing revenue sharing schemes.
Existing contracts such as OceanaGold's Financial or Technical
Assistance Agreement ("FTAA001") shall continue to be valid and
Granting of new mineral agreements has been suspended until the fiscal
sharing arrangements between the Government and the Contractor are
rationalised and legislated. We note that the Government has clarified
however that this moratorium does not preclude the negotiation of FTAAs
for future mining projects.
Exploration permits may be granted following the release of the
Implementing Rules and Regulations (IRR) expected within 60 days of the
Executive Order. The Company remains in "drill ready" status for some
near mine prospects at the Didipio Project and expect the extension of
the exploration period following release of the IRR.
The Executive Order aims to align national interest with local
Measures will be introduced to improve the regulation and control of
small scale mining activities for metallic minerals and will be
restricted to gold, silver and chromite mining only.
The Government shall ensure strict enforcement of the environmental
standards in mining.
There will be improved transparency of the mining industry.
Implementing rules and regulations will be issued by the Philippines
Government in the following weeks which will provide further direction.
Mick Wilkes, Managing Director and CEO of OceanaGold said: "The release
of this Executive Order is a positive outcome for OceanaGold and the
Philippines mining industry. In my recent discussions with senior
Government officials I was pleased that the Government remains
committed to the FTAA Contract for Didipio and comfortable with the
current fiscal sharing arrangements. We are committed to working with
the Government to achieve the outcomes of responsible mining and ensure
benefits to local communities and Government through the development of
our mining projects. OceanaGold's Didipio Project FTAA001, set to be
commissioned in fourth quarter this year, will be the first of its kind
to operate under this type of mining contract, and we look forward to
helping shape best practice for the mining industry in the
OceanaGold Corporation is a significant Asia Pacific gold producer with
projects located on the South Island of New Zealand and in the
Philippines. The Company's assets encompass New Zealand's largest gold
mining operation at the Macraes goldfield in Otago which is made up of
the Macraes Open Pit and the Frasers Underground mines. Additionally on
the west coast of the South Island, the Company operates the Reefton
Open Pit mine. OceanaGold produces approximately 230,000 - 250,000
ounces of gold per annum from the New Zealand operations. The Company
also owns the Didipio Project in northern Luzon, Philippines which is
in construction and expected to commission in Q4 2012. Currently,
Didipio is expected to produce 100,000 ounces of gold and 14,000 tonnes
of copper per year over an estimated 16 year mine life.
OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol OGC.
Statements in this release may be forward-looking statements or
forward-looking information within the meaning of applicable securities
laws. Any statements that express or involve discussions with respect
to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as "expects" or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans", "estimates"
or "intends", or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved) are
not statements of historical fact and may be forward-looking
statements. Forward-looking statements such as production forecasts and
development timelines are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements. They
include, among others, the accuracy of mineral reserve and resource
estimates and related assumptions, inherent operating risks and those
risk factors identified in the Company's most recent Annual Information
Form prepared and filed with securities regulators which is available
on SEDAR at www.sedar.com under the Company's name. There are no assurances the Company can
fulfil such forward-looking statements and, subject to applicable
securities laws, the Company undertakes no obligation to update such
statements. Such forward-looking statements are only predictions based
on current information available to management as of the date that such
predictions are made; actual events or results may differ materially as
a result of risks facing the Company, some of which are beyond the
Company's control. Accordingly, readers should not place undue
reliance on forward-looking statements.
SOURCE: OceanaGold Corporation
For further information:
Investor Relations - Melbourne
Nova Young or Darren Klinck
Tel: +61(3) 9656 5300
Investor Relations - Toronto
+1 416 915 3123