St Barbara has entered into a binding agreement to divest its remaining stake in the New Simberi Gold Project to Lingbao Gold Group for A$410m in cash.
In addition to the cash consideration, St Barbara will receive a further A$43m cash repayment for its share of construction capital for New Simberi between April 2026 and the agreement signing.
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Lingbao will also cover St Barbara’s share of capital requirements for New Simberi from the signing of the agreement until completion.
If the deal does not complete due to certain conditions not being satisfied by Lingbao, this funding becomes a loan repayable by St Barbara.
Upon completion, St Barbara will retain a 2.75% net smelter return (NSR) royalty on future gold and silver production from New Simberi, as well as a 1.5% royalty on any future minerals output from the Tabar Islands Group exploration licences.
Both royalty payments are due to begin from 1 July 2027, with Lingbao providing a parent company guarantee.
The deal is scheduled for completion in the March quarter of 2027.
The transaction requires regulatory clearance in both China and Papua New Guinea (PNG), along with St Barbara and Lingbao shareholder approval, unless specifically waived under Australian Securities Exchange or Hong Kong Exchanges and Clearing listing rules.
St Barbara managing director and CEO Andrew Strelein said: “This transaction will crystallise substantial value for St Barbara shareholders and allows the company to focus on the development of the Nova Scotia gold projects and the attractive exploration portfolio surrounding the 15-Mile Processing Hub.
“The company’s interest in New Simberi has never been fully reflected in the company’s share price and this transaction resolves that situation at a logical point for Lingbao to take full control of New Simberi.”
St Barbara confirmed that customary warranties apply to the sale and it will continue to manage an existing tax reassessment matter with PNG authorities.
Following completion, St Barbara expects its assets to include around A$880m in cash, the 15-Mile Processing Hub Project and exploration portfolio, the Touquoy Restart Project and a portfolio of royalty interests, with no outstanding debt or hedging.
Macquarie Capital (Australia) is acting as St Barbara’s financial adviser on the transaction, while legal advice is being provided by Allens.
In April 2026, St Barbara received A$389m from Lingbao for its investment in the New Simberi Gold Project and approved the final investment decision to proceed with project construction, alongside Lingbao.
