Ok Tedi Mining Limited (OTML) will purchase Kingston Resources’ Misima gold-silver project for $95 million.
The deal is set to deliver Kingston up to $70 million in cash, plus ongoing exposure to Misima’s future large-scale production profile.
Kingston managing director Andrew Corbett said the sales process had been in the works since November.
“Kingston is delighted to complete this transaction with PNG’s largest mining company Ok Tedi,” he said. “Ok Tedi is the natural owner and operator of Misima and we are excited by their vision to fast track toward final investment decision for project construction.
“We look forward to Ok Tedi returning Misima to a leading Asia-Pacific gold mine for the benefit of the Papua New Guinea economy and local Misima community.”
OTML chairman Mark Stone said the sale was proof of PNG’s revitalised mining sector.
“The move to a multi-mine business is a significant step for Ok Tedi, reinforcing the company’s commitment to harnessing the region’s mineral assets and capitalising on government support for long-term growth,” he said.
“Papua New Guinea is a mineral-rich land with many natural assets just waiting to be unlocked and the Misima mine, with its 3.8 million ounces resource together with potential exploration upside, is a great example of that.”
The acquisition will be funded by OTML’s existing cash flows.
“We have many great projects on the horizon, from mine improvements to extend the mine life to our ‘lighting up the west’ hydro-electrification strategy and other sustainable initiatives – the reopening of Misima is just one early step in the journey,” OTML managing director and chief executive officer Kedi Ilimbit said.
“Through this project we will boost social and business opportunities on Misima Island and ensure the benefits flow through into the communities, and also bring more economic value to our shareholders, the people of PNG.”
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