Kingston Resources (ASX: KSN), a Papua New Guinea mining company, has received an initial payment of $50 million from Ok Tedi Mining following the sale of the Misima gold mine. This payment is part of a total $95 million transaction agreed upon earlier this year. Kingston Resources will receive an additional $10 million payment 12 months post-completion, with a further $10 million contingent on Ok Tedi making a positive final investment decision regarding the development of Misima.
Kingston Resources is also eligible for a 0.5% gross revenue royalty on all gold production at Misima after the first 500,000 ounces are produced. Ok Tedi retains a $25 million royalty buy-back option. Misima, located 625 kilometres east of Port Moresby in Milne Bay, has a current mineral resource estimate of 3.8 million ounces of gold and 22.1 million ounces of silver.
Kingston Resources moved to 100% ownership of the Misima project in 2021. The company completed a definitive feasibility study (DFS) which confirmed the viability of a new long-life open-pit mining operation at the site, assuming a 20-year mine life, and an annual throughput capacity of 6.1Mt. Ok Tedi will now proceed with refining the DFS and environmental impact studies to accelerate its development and permitting plans for the mine.
Kingston Resources’ managing director Andrew Corbett said the payment positions the company as a debt-free and well-funded Australian copper and gold producer. “The completion of this sale has unlocked substantial value for our shareholders and enables us to focus squarely on growing Mineral Hill and expanding our operating footprint,” he said. Kingston Resources is an Australian mining company focused on gold and copper exploration and development, with projects including the Mineral Hill mine in New South Wales.
