Kingston Resources moves to full ownership of Misima Gold Project in PNG
Kingston Resources Ltd has bought Pan Pacific Copper Co Ltd’s (PPC) 19% interest in the 3.2-million-ounce Misima Gold Project in Papua New Guinea, extending its ownership to 100%.
Under the sales purchase agreement, which was agreed and executed with its joint venture partner, Kingston will pay $2 million for the additional stake in two tranches.
The first tranche of $350,000 is due on or before June 30, 2020, and the second tranche of $1.65 million is payable on or before February 28, 2021.
Kingston Resources managing director Andrew Corbett said: “We would like to thank PPC for their partnership at Misima and for their collaborative approach to this transaction.
"It has been a pleasure dealing with the PPC team since we acquired our initial interest in the project in November 2017.
“We are now looking forward to taking the next step at Misima, with a transaction that delivers 100% ownership of this outstanding gold development opportunity to the company as we move ahead with a pre-feasibility study that is already well underway and on track for delivery in Q4 of this year.”
Pre-feasibility study on track
Following a ‘significant’ increase in the JORC resource estimate at the Misima project to 105 million tonnes at 0.93 g/t for 3.21 million ounces, Kingston Resources is now focused on completing a pre-feasibility study and ore reserve estimate by year-end.
The updated Misima resource announced on May 21 delivered a 15% increase in total gold ounces and 30% increase in total silver ounces, confirming the project’s status as one of the most significant mid-tier gold development opportunities in the Asia-Pacific region.
Misima operated as a profitable open pit mine by Placer Pacific between 1989 and 2001, producing over 3.7 million ounces before it was closed when the gold price was below US$300 per ounce.
Kingston also owns 75% of the high-grade Livingstone Gold Project in Western Australia where active exploration programs are also in progress.