Kingston Resources (ASX:KSN) has completed its repayment to PURE Asset Management for its $15 million debt facility after receiving a $50 million cash payment for its sale of the Misima Gold Project in Papua New Guinea.
This repayment now lists Kingston as debt free, retaining the loan facility to restart its Mineral Hill operations in New South Wales to deliver a five-year mine life.
Managing Director Andrew Corbett says the company is pleased to be debt-free as it progresses Mineral Hill towards production.
“The support of PURE Asset Management since 2022 ensured we were able to progress our mine life plans and enabled us to be in a strong position as we completed the Misima divestment,” Corbett says.
Kingston entered a binding agreement with Papua New Guinea entity, Ok Tedi Mining, to divest its Misima Gold Project for a total of $95 million upon completion, as reported by Mining.com.au.
The company received its first payment of $50 million in July, which will allow the company to streamline its focus at the Mineral Hill Mine with intended copper production scheduled for 2026.
Ok Tedi will pay a further $10 million 12 months from the first payment, as well as another $10 million after returning a final investment decision.
Kingston retains a 0.5% gross revenue royalty following the first 500,000 ounces of gold produced at the project, which Ok Tedi can buy back for $25 million.
Write to Maddison Elliott at Mining.com.au
Images: Kingston Resources
