St Barbara Secures A$32M Deposit Toward A$370M Simberi Stake Sale
St Barbara has received a significant A$32 million deposit from Lingbao Gold Group, marking a key milestone in their strategic partnership to co-own the Simberi Gold Project. This deposit moves the companies closer to finalising a transformative A$370 million investment.
- Lingbao Gold Group deposits A$32 million in escrow
- Deposit part of A$370 million for 50% stake in St Barbara Mining Pty Ltd
- St Barbara Mining owns 80% of Simberi Gold Project
- Completion targeted alongside Final Investment Decision in Q3 FY26
- Strategic partnership underpins Simberi Expansion Project funding
Strategic Investment Progress
St Barbara Limited has taken a decisive step forward in its partnership with Lingbao Gold Group by receiving a substantial A$32 million deposit. This payment is a precursor to a larger A$370 million subscription agreement, through which Lingbao aims to acquire a 50% interest in St Barbara Mining Pty Ltd. This subsidiary holds an 80% stake in the Simberi Gold Project, a key asset in St Barbara’s portfolio.
Escrow and Funding Implications
The deposit will be securely held in escrow, reflecting the seriousness and commitment of both parties to the transaction. This arrangement ensures that funds are protected and earmarked specifically for the acquisition, providing financial certainty as the companies prepare for the next phase of development. The infusion of capital is critical to underpinning the Simberi Expansion Project, which aims to enhance production capacity and extend the mine’s operational life.
Timing and Future Milestones
Both St Barbara and Lingbao are targeting completion of the strategic investment to coincide with a Final Investment Decision (FID) on the Simberi Expansion Project, expected in the third quarter of fiscal year 2026. Aligning the transaction close with the FID is a strategic move, ensuring that the partnership and funding are firmly in place before committing to the expansion’s capital expenditure.
Broader Strategic Context
This partnership with Lingbao represents more than just a capital injection; it signals a deepening collaboration between Australian and Chinese mining interests. For St Barbara, securing a partner with Lingbao’s resources and expertise could accelerate development timelines and mitigate financial risks. For Lingbao, gaining a foothold in the Simberi project offers exposure to a high-quality gold asset with growth potential.
Looking Ahead
While the receipt of the deposit is a positive development, the full transaction remains subject to conditions and the successful completion of the FID. Investors will be watching closely for updates on project approvals, financing arrangements, and any potential shifts in market conditions that could impact the timeline or economics of the expansion.
Bottom Line?
The deposit marks a pivotal step, but the real test lies in delivering the Simberi Expansion on time and on budget.
Questions in the middle?
- What conditions must be met before the full A$370 million transaction completes?
- How will the partnership with Lingbao influence operational control and decision-making at Simberi?
- What are the potential risks if the Final Investment Decision is delayed or altered?
