Ausgold (ASX:AUC), in a quarterly update, said its board unanimously recommends that shareholders vote in favor of a scheme of arrangement under which an Australian unit of OceanaGold will acquire Ausgold, according to a Thursday Australian bourse filing.

The recommendation is made in the absence of a superior proposal emerging and subject to the independent expert concluding, and continuing to conclude, that the scheme is in the best interests of Ausgold shareholders, the filing said.

Under the deal, which was disclosed in August, Ausgold shareholders will receive 0.03365 OceanaGold common shares for each Ausgold share held, implying a total offer value of AU$1.36 per Ausgold share and a total valuation of about AU$776 million.

Ausgold's shares were down past 1% in recent Thursday trade.