St Barbara receives $269.5m investment from Lingbao

St Barbara has received A$389m ($269.5m) from Lingbao Gold Group for its concern successful the New Simberi Gold Project and has approved the last concern determination (FID) to proceed with task construction, alongside Lingbao.

The institution reported a currency equilibrium of A$504m, excluding A$26m remaining arsenic the archetypal currency presumption of a jointly owned subsidiary.

The New Simberi Gold Project has a operation outgo of $333m.

This magnitude includes astir $13m that St Barbara had spent connected the task by March 2026.

St Barbara has secured afloat backing for its 50% stock of the New Simberi Gold Project operation costs.

The institution expects to grounds astir A$0.5bn summation from the transaction, which volition beryllium included successful FY26 fiscal results, with nary expected taxation liabilities.

The completion of a abstracted transaction with Kumul Mineral Holdings is awaiting regulatory support from Papua New Guinea's Independent Consumer and Competition Commission (ICCC) and National Executive Council (NEC).

St Barbara anticipates these approvals volition beryllium granted soon. Any hold successful the Kumul transaction volition not impact the Lingbao woody oregon the last concern decision.

The New Simberi Gold Project plans to grow the existent Simberi mining and processing operations to process higher-grade sulphide ore reserves.

Mining output is acceptable to summation to astir 20 cardinal tonnes per annum (mtpa), doubling the existent 10mt.

The task aims to boost accumulation to implicit 200,000oz per annum, with an anticipated all-in sustaining outgo betwixt $1,100 and $1,400 per ounce.

The projected excavation beingness is 13 years, based solely connected the existing ore reserves, not accounting for immoderate further mineral assets conversions oregon exploration targets.

Macquarie Capital (Australia) is acting arsenic the fiscal advisor and Mallesons arsenic the ineligible advisor for St Barbara.

St Barbara managing manager and CEO Andrew Strelein said: “Today’s completion of the Lingbao transaction and support of the FID represents a large milestone for St Barbara. The New Simberi Gold Project is simply a long-life, low-cost cognition afloat funded for improvement and volition summation accumulation to implicit 200 kozpa.

“This transaction on with the FID support importantly de-risks the improvement of the task and unlocks semipermanent worth for the institution and shareholders. The task volition besides present important benefits to the section communities and PNG stakeholders.”

In August 2024, St Barbara divested its implicit involvement successful Catalyst Metals, securing currency proceeds of A$25.2m.

"St Barbara receives $269.5m concern from Lingbao" was primitively created and published by Mining Technology, a GlobalData owned brand.