Latest news with #Misima
Yahoo
22-05-2025
- Business
- Yahoo
Kingston to divest Misima gold project to Ok Tedi Mining for $61m
Australian Securities Exchange (ASX)-listed mining company Kingston Resources has entered into a binding definitive agreement with Ok Tedi Mining to divest its Misima gold project in Papua New Guinea for a total consideration of A$95m. The transaction terms include an upfront payment of A$50m, A$10m in deferred cash payable 12 months after completion of the transaction and another A$10m payable upon the final investment decision (FID) on the project by Ok Tedi. Additionally, a 0.5% uncapped gross revenue royalty is payable on gold and copper production from Misima, commencing after the first 500,000oz of gold is produced. Ok Tedi retains a buyback right for the royalty at A$25m. The transaction aligns with Kingston's strategy to realise value for its shareholders and expedite the project's production restart. Mining operations at the Misima gold mine began in 1989. The mine stopped open-pit production in 2001 and closed in 2004. The transaction enables Kingston to repay its A$15m debt to Pure Asset Management and save up to A$4m annually in costs related to the Misima project and debt servicing. The sale is not contingent on financing or further shareholder approval and is subject to conditions such as approval from the Independent Consumer & Competition Commission of Papua New Guinea and the renewal of exploration licence EL 1747. The transaction is expected to close in the first quarter of fiscal year 2026 (Q1 FY26). The completion of this deal will enable Kingston to concentrate on the Mineral Hill gold and copper mine in New South Wales, Australia, which the company acquired from Quintana MH in 2021. The company aims to start underground production at Mineral Hill in 2026 and extend the mine life beyond 2030, leveraging the financial gains from the transaction for further exploration and potential production increases. Kingston's exploration efforts will focus on identifying a second underground ore source to extend current mine life, initiating surface exploration near the mine and greenfield exploration at EL 8334 for new discoveries. The company also remains open to engaging with owners of nearby mineral resources for third-party processing opportunities. Kingston managing director Andrew Corbett said: 'The sale of Misima concludes a comprehensive global strategic process that commenced in November 2024. This deal will deliver Kingston up to $70m in cash plus ongoing exposure to the future large-scale production profile of Misima through an gross revenue royalty, unlocking significant value for our shareholders. 'The total consideration is greater than Kingston's current market capitalisation whilst we retain 100% of the Mineral Hill gold and copper operation. Kingston will now intensify the focus on growth and development projects at Mineral Hill and target copper production in 2026.' "Kingston to divest Misima gold project to Ok Tedi Mining for $61m" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Herald Sun
20-05-2025
- Business
- Herald Sun
Break it Down: Kingston's Misima sale to raise the bar on Mineral Hill gold-copper production
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully looks at the Kingston Resources (ASX:KSN) move to bank $95 million from the divestment of its Misima gold project in Papua New Guinea to mining giant Ok Tedi. The deal returns a doubling of KSN's investment, wipes its debt, and funds a push to lift the bar on Australian gold and copper production as the company moves on transforming itself into a multi-mine producer from the rich Cobar Basin of New South Wales. Watch the video to learn more. Originally published as Break it Down: Kingston's Misima sale to raise the bar on Mineral Hill gold-copper production Stockhead The ASX has bounced back amid rate-cut hopes. Meanwhile Wall Street gained and China had investors wading back into banks and tech plays. Stockhead ASX climbs 0.75pc out of the gate as markets bet on an even chance of a 50-bp interest rate cut from the RBA's rate decision today.
