St Barbara satisfies conditions for $500m Simberi gold project carve up
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The news: Gold miner St Barbara has confirmed all conditions precedent have been satisfied or waived to progress the 40% divestment in its Simberi gold project in Papua New Guinea, announced in December.
The numbers: St Barbara previously said China’s state-owned Lingbao Gold Group had agreed to pay $370 million, giving it an effective 40% stake in the project.
Both companies have also committed to making a final investment decision at completion.
PNG’s Kumul Mineral Holdings separately agreed to pay $100 million for a 20% stake in the project.
St Barbara said “good progress” has been made on satisfying conditions precedent for the divestment, with two PNG government approvals still required.
Completion of both transactions are expected by on 1 April. St Barbara expected to record a gain on sale of around $500 million.
What they said: "This is a pivotal moment for St Barbara as we unlock significant immediate value for the company, while opening up a new future for our business as we move to execute the New Simberi Gold Project and deliver value to our shareholders and to our stakeholders in PNG,” said St Barbara’s managing director and CEO Andrew Strelein.
The source: ASX
