St Barbara Agrees to Sell Stake in New Simberi Gold Project for A$410 Million
St Barbara Limited (ASX: SBM) has entered into a binding agreement with Lingbao Gold Group to sell its remaining stake in the New Simberi Gold Project in Papua New Guinea for A$410 million in cash. The deal includes an additional A$43 million repayment of construction capital and covers St Barbara's share of future project costs until completion, which may convert into a loan if conditions are not met. Upon closing, scheduled for the March 2027 quarter, St Barbara will retain two royalty interests: a 2.75% net smelter return (NSR) on gold and silver production from New Simberi starting July 1, 2027, and a 1.5% NSR on future minerals output in the Tabar Islands Group exploration licenses. The transaction requires regulatory approvals in China and PNG as well as shareholder consent. St Barbara's CEO Andrew Strelein stated that this move will unlock value for shareholders while allowing the company to focus on its Nova Scotia gold projects and broader exploration portfolio, including the 15-Mile Processing Hub Project and Touquoy Restart Project. The deal is expected to leave St Barbara with approximately A$880 million in cash post-completion.
Topics: divestment mining royalty agreements