Canadian gold and copper producer OceanaGold (TSX, NYSE: OGC) is buying Australia’s Ausgold (ASX: AUC) for A$776 million (almost $553 million), giving the miner its first acquisition in Australia and control of the Katanning gold project in Western Australia.

The offer values Ausgold at A$1.36 per share, a 27.7% premium to its Friday close. Shareholders will receive 0.03365 OceanaGold common shares for each Ausgold share held, with an option to elect cash consideration, and are expected to own about 6% to 8% of OceanaGold after closing.

“This marks our first acquisition in Australia, and we are excited to build on the great work done by the Ausgold team to further optimize the development of the Katanning project for the benefit of both OceanaGold and Ausgold shareholders,” OceanaGold CEO Gerard Bond said.

The deal adds another development project to OceanaGold’s pipeline as the company searches for external growth opportunities alongside its existing mines in the US, New Zealand and the Philippines.

Ausgold’s board has unanimously recommended shareholders approve the transaction. Major shareholder Dundee (TSX: DC.A), which holds a 7.7% stake, has confirmed it intends to vote in favour of the deal.

The transaction is scheduled to close in December, subject to shareholder approval and other customary conditions.