Regulatory Approval Clears Path for Kingston’s $95M Misima Divestment
Kingston Resources has fulfilled all regulatory conditions to complete the $95 million sale of its Misima Gold Project to Ok Tedi Mining, unlocking an immediate $50 million payment.
- Regulatory clearance obtained from PNG’s Independent Consumer & Competition Commission
- Completion triggers $50 million upfront payment to Kingston
- Total deal valued at $95 million with deferred payments and royalties
- Sale marks a strategic divestment of Misima Gold Project
- Future royalties contingent on gold production and OTML’s investment decisions
Regulatory Green Light
Kingston Resources Limited has announced a significant milestone in the sale of its Misima Gold Project in Papua New Guinea, having secured clearance from the country’s Independent Consumer & Competition Commission. This regulatory approval satisfies all conditions precedent, allowing the transaction to proceed to completion.
Unlocking Immediate Value
The deal, originally announced in May 2025, is valued at $95 million. With all approvals now in place, Kingston expects to receive the initial $50 million cash payment within five business days. This immediate influx of capital is poised to strengthen Kingston’s balance sheet, which stood at $12.5 million in cash as of March 31, 2025.
Deferred Payments and Royalties
Beyond the upfront payment, the agreement includes $10 million payable 12 months after completion and another $10 million contingent on Ok Tedi Mining Limited’s (OTML) positive Final Investment Decision to advance commercial-scale development of the Misima project. Additionally, Kingston retains a 0.5% gross revenue royalty on gold production beyond 500,000 ounces, with OTML holding an option to buy back this royalty for $25 million.
Strategic Implications
This divestment signals Kingston’s strategic shift away from direct project ownership towards capital recycling and potential reinvestment in other opportunities. For OTML, acquiring Misima expands its portfolio in PNG’s gold mining sector, though the pace and scale of development remain to be seen. The deferred payments and royalties align Kingston’s future returns with OTML’s operational success.
Looking Ahead
Investors will be watching closely for confirmation of the initial payment and any updates on OTML’s investment decisions. The transaction’s completion also raises questions about Kingston’s next moves and how it will deploy the newly freed capital amid evolving market conditions.
Bottom Line?
With $50 million imminent, Kingston’s sale of Misima sets the stage for fresh strategic momentum and market watchfulness.
Questions in the middle?
- When will OTML make its Final Investment Decision on Misima’s development?
- How will Kingston deploy the proceeds from this sale in the near term?
- What are the prospects and timelines for gold production triggering royalty payments?
