Kingston Resources Ltd (ASX:KSN) is now leveraged to the progress of Metal Bank Ltd (ASX:MBK) and its ongoing portfolio overhaul through the sale of its 75% interest in the Livingstone Gold Project in Western Australia.
The sale to Metal Bank includes a share purchase agreement and the total consideration is up to $10 million.
Livingstone acquisition
MBK has entered into a share purchase agreement with Kingston Resources to acquire all shares in its wholly-owned subsidiary, Westernex Pty Ltd and its 75% interest in the Livingstone Project.
“We are very excited to be announcing these transactions, which will see a transformed MBK holding a significant portfolio of advanced copper and gold exploration projects, all with substantial growth upside,” Metal Bank chair Inés Scotland said.
The consideration for the acquisition includes an initial $3.5 million, comprising $2.5 million in cash and $1 million in shares (including 1 free attaching new option for every 2 shares issued).
Completion of the acquisition, which is subject to certain conditions precedent, is expected to be on or about December 10, 2021.
The Livingstone Project provides:
- A JORC 2004 inferred resource of 49,900 ounces of gold at the Homestead prospect with potential for immediate expansion and upgrade;
- The advanced Kingsley deposit with gold mineralisation defined over 1 kilometre of strike and an exploration target of 660,000-770,000 tonnes grading 1.3 to 1.5 g/t gold for a total of 30,000-34,000 ounces using a nominal 0.5 g/t gold cut-off;
- The Livingstone prospect, with extensive gold-in-soil anomaly, historical high-grade drilling results and historic workings; and
- 40 kilometres+ of prospective strike length with multiple untested target areas.
Kingston is now well-positioned to enjoy future exploration upsides at Livingstone and elsewhere through its holding of shares and options in Metal Bank while focusing fully on its flagship Misima Gold Project in PNG.
Metal Bank has been developing its portfolio in an effort to consolidate copper and gold assets.
MBK’s projects
Following the acquisition of the Livingstone Project and exercise of an option to acquire the Millennium Copper-Cobalt Project, MBK will hold a significant portfolio of advanced gold and copper exploration projects including:
- A 75% interest in the Livingstone Project;
- The right to earn up to 80% in the Millennium Copper-Cobalt Project which holds an inferred 2012 JORC resource of 5.9 million tonnes at 1.08% copper equivalent across five granted Mining Leases with potential for expansion; and
- The 8 Mile, Wild Irishman and Eidsvold gold projects in southeast Queensland where considerable work by MBK to date has drill-proven both high-grade vein-style and bulk tonnage intrusion-related gold mineralisation.
The divestment will also allow Kingston to focus on its Misima Gold Project underpinned by a 3.8-million-ounce mineral resource and a strong pipeline of regional exploration targets. Kingston is now advancing mining studies and progressing the mining approvals process across the project.