The Independent Consumer and Competition Commission (ICCC) has cleared the sale of the Misima gold project to Ok Tedi Mining Limited (OTML).
The $95 million transaction, which was announced in May, was subject to a number of conditions, including approval of the ICCC and a trouble-free renewal of the single exploration licence that covers the Misima project. All hurdles have now been passed, and seller Kingston Resources is expecting the first cash component of the consideration, $50 million, to be transferred by July 10.
A further $10 million will be due 12 months after the sale completion, and $10 million again when OTML makes the final decision to proceed with commercial scale development of the project. The deal also includes a 0.5 per cent royalty up to a buy-back right of $25 million.
Kingston managing director Andrew Corbet said OTML was the “natural” operator for the project as it moves towards its commercial production and development phases.
OTML managing director and chief executive officer Kedi Ilimbit said the Misima project represents a significant acquisition for OTML, making it a multiple mine owner for the first time.
“We have many great projects on the horizon,” he said when the sale was first announced. “The reopening of Misima is just one early step in the journey.”
The acquisition will be funded by OTML’s existing cash flows.
Kingston Resources first bought into the Misima mine in 2017, taking on a 49 per cent stake in a joint venture with Pan Pacific Copper Co. It moved to 100 per cent ownership in 2021.
The Misima project represents 3.8 million ounces of resources, with potential for even more if as exploration under the new owner continues.
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