Lingbao to Acquire New Simberi Gold Project in PNG for A$410 Million, Completion Expected in March 2027 Quarter

en.Wedoany.com Reported - Lingbao Gold Group will acquire St Barbara's remaining stake in the New Simberi Gold Project for a cash consideration of A$410 million. The two parties have signed a binding agreement for the transaction.

In addition to the cash consideration, St Barbara will receive A$43 million in cash reimbursement, corresponding to its share of the New Simberi project construction capital from April 2026 to the date of the agreement signing. From the signing of the agreement to completion of the transaction, the portion of the project's capital requirements originally borne by St Barbara will be borne by Lingbao. If the transaction fails to complete because Lingbao fails to satisfy certain conditions, these funds will convert into a loan repayable by St Barbara.

Following completion, St Barbara will retain two royalties: a 2.75% net smelter return (NSR) on future gold and silver production from New Simberi, and a 1.5% royalty on any future mineral output under the Tabar Islands Group exploration licences. Both royalties will commence payment from 1 July 2027, with Lingbao to provide a parent company guarantee.

The transaction is expected to complete in the March 2027 quarter. Prior to that, the transaction requires regulatory approvals in China and Papua New Guinea (PNG), as well as shareholder approvals from both St Barbara and Lingbao, unless a specific waiver is obtained under the listing rules of the Australian Securities Exchange or Hong Kong Exchanges and Clearing Limited.

St Barbara Managing Director and Chief Executive Officer Andrew Strelein said the transaction will unlock significant value for St Barbara shareholders, allowing the company to focus on its Nova Scotia gold project and the development of an attractive exploration portfolio around the 15-Mile Processing Hub. He noted that the company's interest in the New Simberi project was never fully reflected in its share price, and the transaction resolves this at a logical point when Lingbao takes full control of New Simberi.

The sale is subject to customary warranty provisions, and St Barbara will continue to handle existing tax reassessment matters with Papua New Guinean authorities. The company expects that following completion of the transaction, its assets will include approximately A$880 million in cash, the 15-Mile Processing Hub Project and exploration portfolio, the Touquoy Restart Project, and a range of royalty interests, with no outstanding debt or hedges.

Macquarie Capital (Australia) is acting as financial adviser to St Barbara for this transaction, with Allens providing legal advice.

In April 2026, St Barbara received A$389 million from Lingbao for its investment in the New Simberi Gold Project and approved the final investment decision to advance project construction jointly with Lingbao.