Kingston Resources has confirmed the receipt of an initial A$50m ($32.85m) cash payment from Ok Tedi Mining, marking the completion of the first phase of the Misima gold project divestment in Papua New Guinea.
The transaction is part of a broader A$95m deal under which Kingston Resources entered a binding definitive agreement with Ok Tedi Mining for the divestment of its Misima gold project in May 2025.
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The initial A$50m cash injection will be followed by a subsequent A$10m cash payment due one year post-completion and a further A$10m contingent on a positive final investment decision (FID) for Misima.
Kingston Resources managing director Andrew Corbett stated: “We are pleased to have received the first $50 million in cash from the Misima transaction, which positions Kingston as a debt-free and well-funded Australian copper and gold producer. The completion of this sale has unlocked substantial value for our shareholders and enables us to focus squarely on growing Mineral Hill and expanding our operating footprint.”
“Our partnership with Ok Tedi ensures that Misima is in capable hands, with the potential for a near-term development decision in a favourable gold price environment. Kingston retains ongoing exposure to the upside at Misima through the deferred payment and royalty structure.”
“We are now fully focused on advancing our core projects at Mineral Hill and evaluating new growth initiatives that align with our strategy of being a multi-asset producer delivering long-term shareholder returns.”
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By GlobalDataThe company now plans to fully repay its A$15m debt facility, ramp up investment in value creation at Mineral Hill and commence expansion studies for copper production planned for 2026.
The deal also provides a robust platform for Kingston to explore additional copper and gold opportunities within Australia.
The agreement also stipulates a 0.5% uncapped gross revenue royalty on gold and copper production from Misima, which will commence after the production of the first 500,000 ounces of gold.
Ok Tedi retains a buyback right for the royalty at $25m.
