China's Lingbao Gold Plans to Spend 1.993 Billion Yuan to Acquire Remaining Equity in Papua New Guinea's Simberi Gold Mine

en.Wedoany.com Reported - On October 14, Lingbao Gold Group Company Ltd. and Australia's St Barbara Limited held a signing ceremony in Hong Kong for the acquisition of the remaining equity in the Simberi Gold Mine, signing the relevant ancillary agreements. According to the share sale agreement signed by both parties on September 10, Lingbao Gold plans to acquire the remaining 50% less 1 share equity in Tabar Islands Holdings Pty Ltd through its wholly-owned subsidiary Lingbao Gold International Co., Ltd. for approximately AUD 410 million (approximately RMB 1.993 billion). Upon completion of the transaction, it will achieve 100% control of the target company.

This acquisition continues the investment agreement reached by both parties in December 2025. In April 2026, Lingbao Gold completed the initial subscription of 50% plus 1 share equity in the target company, with an originally scheduled consideration of approximately AUD 370 million. At closing, after cash and working capital adjustments, the actual payment was approximately AUD 389 million. Under the current remaining equity sale agreement, Lingbao Gold will also repay approximately AUD 43 million to St Barbara Limited for project construction capital expenditure, and bear the relevant construction funds that the seller should bear during the period from the signing of the agreement to closing.

St Barbara Limited will retain, after completion of the transaction, a 2.75% net smelter return royalty on future gold and silver production from the new Simberi Gold Mine, as well as a 1.5% net smelter return royalty on mineral products within the relevant exploration license areas of the Tabar Islands. The above royalties are planned to take effect from July 1, 2027, and Lingbao Gold will provide a parent company guarantee for the relevant payment obligations.

The Simberi Gold Mine is located in the Tabar Islands of Papua New Guinea, and its existing oxide ore mining and processing operations continue to operate. In April 2026, the final investment decision was made for the sulfide ore expansion project of the new Simberi Gold Mine, approving a construction investment of approximately USD 333 million. The project plans an annual gold production of approximately 200,000 ounces, with an initial mine life of more than 13 years, and the mining license has been extended to 2038. According to the initial mine production plan, the project is expected to produce a cumulative total of approximately 2.2 million ounces of gold, of which approximately 2 million ounces will be saleable gold.

Previously, the project operating company reached an agreement with Eda Minerals Limited, a subsidiary of Papua New Guinea's state-owned mining enterprise Kumul Mineral Holdings Limited, stipulating that the latter would contribute AUD 100 million to acquire a 20% interest in the new Simberi Gold Mine and establish a project joint venture arrangement. After completion of the relevant transactions, Lingbao Gold will hold an 80% project interest in the new Simberi Gold Mine through the target company, with the remaining 20% held by Eda Minerals Limited.

The acquisition of the remaining equity is expected to complete closing in the first quarter of 2027, subject to relevant regulatory approvals in China and Papua New Guinea and applicable shareholder approval conditions.