Kingston Resources Ltd (ASX:KSN) (FRA:RZZ) has moved to 100% ownership of the 3.6-million-ounce Misima Gold Project in PNG after completing all terms with former joint venture partner Pan Pacific Copper Co Ltd (PPC) to acquire the remaining 19% interest in the large-scale development project.
Following receipt of all PNG regulatory approvals, Kingston has paid the $1.65 million final tranche of the total consideration of $2 million, formalising 100% ownership of the project.
Shares are up 9.52% to 23 cents intra-day.
On-track to become “new gold producer”
Managing director Andrew Corbett said: “This is an outstanding outcome for shareholders and a strategically important milestone for the company in our pathway to become a substantial new gold producer in the Asia-Pacific region.
“The completion of this transaction provides Kingston with 100% ownership of our flagship asset, which is rapidly progressing towards development.
“Since we first acquired an initial 49% interest in the Misima Gold Project back in late 2017, we have delivered a number of key project milestones that culminated in the delivery of a highly positive pre-feasibility study for Misima in late 2020.
“This PFS clearly demonstrated that Misima is a large-scale, long-life, low-cost gold project that is set to deliver significant value and opportunities for all stakeholders.
“We have grown the initial resource base from 2.3 million ounces to 3.6 million ounces, delivered a maiden 1.35-million-ounce ore reserve, and we expect both our resources and reserves to continue to grow through ongoing infill drilling and testing of exploration targets.”
“Streamlined and simplified structure”
An ongoing resource drilling program at Kulumalia, on the southern end of the main Umuna orebody at Misima returned multiple, wide, mineralised intersections in early March that increase the geological confidence in the existing resource model.
Encouragingly, Kingston said the results delivered some particularly high silver grades, which were expected to enhance the economic contribution of mining the Kulumalia area within the Umuna Pit.
Following completion of the drill program, assay results will feed into an updated ore reserve estimate for the Misima Gold Project, which is expected to be delivered later this year.
Corbett added: “Completion of this acquisition provides Kingston with a streamlined and simplified ownership structure, providing a strong platform and added flexibility from which to continue checking-off the necessary milestones to re-start gold production on Misima Island.”
Kingston also owns 75% of the high-grade Livingstone Gold Project in Western Australia's Mid-West where active exploration programs are also in progress.