Kingston Resources receives $1.5m milestone payment for Livingstone sale to Metal Bank

Kingston Resources’ (ASX: KSN) cash pile has improved after the company received a $1.5 million milestone payment as part of the sale of its Livingstone gold project to Metal Bank (ASX: MBK) last year.

Metal Bank purchased Livingstone in December last year for a total consideration of $10 million – comprising a $2.5 million up-front cash payment.

Other terms were $1 million of Metal Bank shares and today’s $1.5 million milestone payment 12 months after the sale.

Further milestone payments include $1 million in cash once Metal Bank has firmed up 250,000 ounces in gold equivalent JORC resources, and $4 million (also in cash) after a 500,000oz gold equivalent resource has been identified.

Kingston managing director Andrew Corbett said the sale of Livingstone was a “fantastic opportunity” to provide shareholders with the exploration upside of the project, while locking-in milestone payments and equity in Metal Bank.

“We are delighted to receive the deferred payment of $1.5 million and look forward to Metal Bank’s continued success at Livingstone,” he added.

Livingstone is located 140km northwest of Meekatharra in Western Australia and has an inferred resource of 30,500oz at the Kingsley deposit, where mineralisation remains open at depth and along strike.

Metal Bank’s drilling over 2022 has extended the known mineralisation at Kingsley from 750m to 1.8km.

The company has developed an exploration target for Kingsley ranging between 290,000-400,000t at 1.8-2 grams per tonne gold for 16,800-25,700oz.

Livingstone also hosts numerous other targets that Metal Bank is actively exploring.

Mineral Hill

Kingston sold Livingstone so it could focus on the Mineral Hill gold mine acquisition and building the asset into a cash flow positive operation.

Mineral Hill is 516km west of Sydney in New South Wales’ Cobar Basin.

The project has 64,286oz in gold reserves and Kingstone is currently processing tailings as it continues aggressively exploring the ground.

October heralded record gold output from the Mineral Hill tailings with 1,332oz produced and 1,390oz sold.

While processing the tailings, Kingston is exploring nearby targets including Pearse South, Pearse North, Southern Ore Zone (SOZ), Jacks Hut, Parkers Hill, Missing Link and GD140.

The company’s strategy is to build reserves at these targets to extend the operational life at Mineral Hill.