St Barbara Limited (ASX:SBM) has announced the completion of Lingbao Gold Group’s strategic investment in the New Simberi Gold Project. St Barbara is an Australian gold producer and explorer with mining operations in Canada, Western Australia and Papua New Guinea. The company also confirmed the Final Investment Decision (FID) to proceed with the US$333 million construction of the New Simberi Gold Project.
With the completion of the Lingbao transaction, St Barbara has received A$389 million in cash consideration, comprising the agreed A$370 million plus a A$19 million adjustment for working capital and cash holdings. As a result, the company’s cash balance now stands at A$504 million. St Barbara is fully funded for its 50% share of the construction costs for the New Simberi Gold Project. Construction is set to commence immediately.
The St Barbara Group anticipates a gain on the sale of approximately A$0.5 billion (unaudited) will be included in the FY26 Financial Results. The company also anticipates that there will be no tax leakage in relation to the transaction with Lingbao. The New Simberi Gold Project is expected to increase production to over 200,000 ounces per annum and has a mine life extending to 13 years based on Ore Reserves alone.
Completion of the transaction with Kumul Mineral Holdings Limited awaits Papua New Guinea Government regulatory approvals. Managing Director and CEO Andrew Strelein noted the Lingbao transaction and FID approval are major milestones. Lingbao’s Chairman, Mr. Wang Pinran, expressed delight and said the project will be fast-tracked into development to achieve the 200,000 ounces per annum target.
