St Barbara has announced the extension of a mining lease for the New Simberi gold project until 2038 – a move that could pave the way for strategic investment.
In a statement, the company’ managing director Andrew Strelein said the announcement forms a key step towards the project’s final investment decision, planned for the third quarter of the 2026 financial year, to expand gold production to more than 200,000 ounces a year.
“The extension of the Mining Lease for the New Simberi Gold Project is an important condition precedent to the Lingbao strategic investment and the 20 per cent asset acquisition by Kumul,” he said.
The news coincides with St Barbara’s activity report for the December quarter, with feasibility study results confirming the New Simberi project is both long-life and low-cost.
Early works growth capital for the project continued with $19 million spent on ball mill procurement, camp expansion, water treatment plant and infrastructure, and the mobile fleet expansion.
St Barbara’s financial position also increased in strength throughout the quarter, with binding agreements signed with both Lingbao Gold Group and Kumul Mineral Holdings.
A subsidiary of Lingbao, Lingbao Gold International, will acquire a 50 per cent interest in St Barbara for around $370 million in order to own 40 per cent of the New Simberi Project.
Kumul’s subsidiary, Eda Minerals, will acquire a 20 per cent interest in the gold project at a cost of around $100 million.
We expect to make a final investment decision on the New Simberi gold project at the end of Q3 FY26, at which time we also expect to complete the agreements with Lingbao and Kumul for their investment in the Project,” Strelein said.
These strategic investments are underpinned by strong gold sales, with 10,000 ounces of gold sold at an average price of $6,404 per ounce.
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