Kingston Resources (ASX:KSN) has entered into a binding definitive agreement to sell its Misima Gold Project in Papua New Guinea to Ok Tedi Mining for $95 million.
The agreement consists of $50 million payable on completion, with $10 million offered 12 months post completion and another $10 million on a final investment decision to develop the project.
It also includes a revenue royalty deal valued at $25 million.
Kingston intends on using the funds raised from the sale to repay its entire $15 million in debt owed to Pure Asset Management.
Remaining funds will be delegated to expanding exploration activities at the Mineral Hill Project, along with developing overall copper production.
The company will be accelerating underground mining activities and conducting open pit mining beginning 2026 across the Mineral Hill Project, to fulfill its six-year mine plan.
Kingston will also use funds to de-risk mine plans with its current infill drilling program, along with the expansion of brownfields by extending mine life beyond 2030 for prospects including SOZ, Parkers Hill, Jacks Hut, and EOZ.
Managing Director Andrew Corbett says the company is pleased to complete this transaction with Ok Tedi to see its operations as the natural owner and operator of Misima, whilst Kingston refocuses towards Mineral Hill.
“The company is now ideally placed to consider accretive Australian based copper and/or gold growth initiatives that match with our vision of being a leading multi mine producer with significant scale and long-term returns,” Corbett says.
Kingston Resources is an Australian exploration company focused on developing gold and copper explorations in New South Wales and Papua New Guinea.
Write to Maddison Elliott at Mining.com.au
Images: Kingston
