Kingston Resources Limited (ASX:KSN) Divests Misima Project for $95 Million
Divestment Transaction
Kingston Resources Limited (ASX:KSN) has entered into a binding agreement to sell the Misima Gold-Silver Project to Ok Tedi Mining Limited for a total consideration of $95 million. The deal includes $50 million in upfront cash, $10 million in deferred cash payable after 12 months, $10 million upon a positive final investment decision, and a 0.5% gross revenue royalty valued at $25 million.
Financial Impact
The transaction will bolster Kingston’s balance sheet, enabling the full repayment of its $15 million debt facility. It also eliminates ongoing cash outflows of up to $4 million annually and provides flexibility to accelerate drilling and exploration at the Mineral Hill site.
Transaction Details
The completion of the transaction is anticipated in Q1 FY26, subject to approval from the Independent Consumer & Competition Commission and other customary conditions. Advisors for the deal include Argonaut PCF as financial advisor and Ashurst as legal advisor.
Operational Focus
Post-divestment, Kingston Resources will concentrate on expanding its Mineral Hill operations, including infill and extensional drilling, as well as regional exploration. The company aims to unlock additional cash flow and production from both open pit and underground mining activities.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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