Kingston Resources to focus on Mineral Hill copper-gold interests after selling Misima project to PNG’s Ok Tedi Mining
Papua New Guinean mining company Ok Tedi Mining has moved to acquire the historical Misima gold project from Kingston Resources (ASX: KSN) for $95 million.
Ok Tedi, which administers the nationalised copper-gold project of the same name in the country’s Western Province, will acquire Misima for $60m, with the potential for further contingent payments of as much as $35m.
Located 625 kilometres east of Port Moresby, the Misima project has a current mineral resource estimate of 3.8 million ounces of gold and 22.1Moz of silver.
Global strategic process
Kingston managing director Andrew Corbett said the sale concluded a comprehensive global strategic process it had commenced in November 2024.
“This deal will deliver Kingston up to $70m in cash plus ongoing exposure to the future large-scale production profile of Misima through a gross revenue royalty, unlocking significant value for our shareholders,” Mr Corbett said.
The total consideration of the deal exceeds Kingston’s current market capitalisation, with the company retaining 100% of the Mineral Hill gold-copper operation.
Mineral Hill focus
Kingston will now focus on its projects at Mineral Hill, where it is targeting copper production in 2026.
“Drilling is set to broaden to other brownfield targets outside of the Southern Ore Zone to include historical production areas such as Parker’s Hill, Jack’s Hut and the Eastern Ore Zone,” Mr Corbett said.
“Investment will also be accelerated in advancing regional drill targets along the highly prospective Mineral Hill Trend.”
“The company is now ideally placed to consider accretive Australian-based copper and/or gold growth initiatives that match our vision of being a leading multi-mine producer with significant scale and long-term returns.”
Growing footprint
Ok Tedi Mining is 100% PNG-owned, with a 67% direct shareholding by the Independent State of PNG through Kumul Minerals and a 33% interest held by the people of the Western Province.
Managing director and chief executive officer Kedi Ilimbit said the acquisition fits the company’s growing footprint.
“Ok Tedi is entering an exciting period of expansion as we look to secure Ok Tedi’s future and act on our Growth 2050 vision,” he said.
“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 sustainability initiatives—the reopening of Misima gold is just one early step in the journey.”