Kingston Resources (ASX:KSN) Sells Misima Gold Project to Ok Tedi for $95M
Transaction Details
Kingston Resources Limited (ASX: KSN) has entered a binding agreement to sell the Misima Gold Project to Ok Tedi Mining Limited for $95 million. The consideration includes $50 million upfront, $10 million deferred at 12 months, $10 million upon Final Investment Decision, and a 0.5% gross revenue royalty on gold production after 500koz. The Royalty will be subject to a buyback right for Ok Tedi for a value of $25 million cash.
Financial Impact
The sale will strengthen Kingston’s balance sheet, allowing full repayment of its $15 million debt facility and provide capital to expand at Mineral Hill. Kingston expects immediate cost savings of up to $4 million annually through the removal of Misima-related costs.
Executive Comments
Managing Director Andrew Corbett stated, “The sale of Misima concludes a comprehensive global strategic process that commenced in November 2024. This deal will deliver Kingston up to $70 million in cash plus ongoing exposure to the future large-scale production profile of Misima through a 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.”
Corbett further added, “Kingston is delighted to complete this transaction with PNG’s largest mining company Ok Tedi. Ok Tedi is the natural owner and operator of Misima and we are excited by their vision to fast track towards FID for project construction. We look forward to Ok Tedi returning Misima to a leading Asia-Pacific gold mine for the benefit of the Papua New Guinea economy and local Misima community.”
“Kingston will now intensify the focus on growth and development projects at Mineral Hill and target copper production in 2026. Drilling is set to broaden to other brownfields targets outside of SOZ to include historical production areas such as Parker’s Hill, Jack’s Hut and EOZ. Investment will also be accelerated in advancing regional drill targets along the highly prospective Mineral Hill Trend,” Corbett continued.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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