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MELBOURNE, Oct. 14, 2016 /CNW/ - OceanaGold Corporation
(TSX/ASX/NZX: OGC) (the "Company") has been advised that the
arbitration tribunal constituted by the World Bank's International
Centre for Settlement of Investment Disputes ("ICSID") has found in
favour of the Government of El
Salvador (the "Government") in its dispute with an
OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID
granted an award of US$8 million to
the Government of El Salvador to
cover its legal fees and costs.
OceanaGold inherited the arbitration process when it acquired
Pacific Rim Mining Corp. in November
2013 and the Company has stated from the beginning that its
goal was to reach an amicable resolution of this matter which would
benefit all parties.
Whilst disappointed, OceanaGold will review the ICSID's ruling
in detail before evaluating the next steps related to its
El Salvador business unit. The
Company believes that a modern resource industry that operates in a
safe and sustainable manner and within internationally recognised
best practices has the potential to unlock a sustainable and
multi-decade development opportunity for the Republic of
El Salvador. However, the Company
recognises that the Government will need to take positive and
definitive steps towards establishing a stable business environment
if it wishes to attract foreign investment to establish this
opportunity.
As a world class producer for over two decades,
Canadian-Australian mining company OceanaGold has been a valued
member of the communities where it operates, including
environmentally sensitive areas such as New Zealand, the
Philippines, and the United
States. Over this time the Company has formed a strong track
record of establishing itself as a partner and employer of choice
that works in a spirit of cooperation and respect with its
stakeholders in a sustainable and ethical way.
About OceanaGold
OceanaGold Corporation is a mid-tier, low-cost, multinational
gold producer with assets located in the
Philippines, New Zealand
and the United States. The
Company's assets encompass its flagship operation, the Didipio
Gold-Copper Mine located on the island of Luzon in the Philippines. On the north island of
New Zealand, the Company operates
the high-grade Waihi Gold Mine while on the South Island of
New Zealand, the Company operates
the largest gold mine in the country at the Macraes Goldfield which
is made up of a series of open pit mines and the Frasers
underground mine. In the United
States, the Company is currently constructing the Haile Gold
Mine, a top-tier asset located in South
Carolina along the Carolina Terrane. The Company expects the
Haile Gold Mine to commence commercial production in early 2017.
OceanaGold also has a significant pipeline of organic growth and
exploration opportunities in the Australasia and Americas
regions.
OceanaGold has operated sustainably over the past 25 years with
a proven track record for environmental management and community
and social engagement. The Company has a strong social license to
operate and works collaboratively with its valued stakeholders to
identify and invest in social programs that are designed to build
capacity and not dependency.
In 2016, the Company expects to produce 385,000 to 425,000
ounces of gold from the combined New
Zealand and Didipio operations and 19,000 to 21,000 tonnes
of copper from the Didipio operation at All-In Sustaining Costs of
US$700 to US$750 per ounce.
SOURCE OceanaGold Corporation