St Barbara has completed its strategic transaction with Lingbao Gold Group and approved a final investment decision to proceed with the New Simberi gold project in Papua New Guinea.
The company confirmed it has received total cash consideration of $389 million from the transaction, comprising the agreed $370 million and a $19 million adjustment for working capital and cash holdings.
This has lifted St Barbara’s cash balance to $504 million, excluding funds retained in the jointly owned subsidiary.
Alongside completion, both parties approved a final investment decision (FID) for the project’s development, with a total construction cost of $US333 million ($483 million), including around $US13 million ($18 million) already spent.
St Barbara said it is fully funded for its 50 per cent share of the development, with construction set to begin immediately.
The company expects to record an unaudited gain on sale of approximately $0.5 billion in its FY26 financial results, with no tax leakage anticipated from the transaction.
Managing director and chief executive Andrew Strelein described the completion and FID approval as a “major milestone” for the company, stating the project is fully funded and de-risked for development.
The New Simberi gold project involves expanding the existing Simberi mining and processing operation to treat higher-grade sulphide ore. Mining rates are expected to increase to around 20 million tonnes per year, up from approximately 10 million tonnes currently.
Production is anticipated to exceed 200,000 ounces per year, with an estimated mine life of 13 years based on existing ore reserves.
A separate transaction with Kumul Mineral Holdings Limited remains subject to regulatory approvals, although any delay is not expected to impact the Lingbao transaction or the approved development timeline.
Subscribe to PNG Mining and receive the latest news on product announcements, industry developments, commodities and more.
