Ok Tedi Mining Limited (Ok Tedi) has today entered into a binding agreement with Kingston Resources Limited (Kingston) to acquire the Misima Gold and Silver Project for A$60M (~US$38M), with further contingent payments totaling up to A$35M (~US$22M). This was announced in a media statement this week. The Misima Gold and Silver Project, located 625km east of Port Moresby in Milne Bay, has a current mineral resource estimate of 3.8Moz of gold and 22.1Moz of silver 1. Ok Tedi operates the Ok Tedi Mine, the longest running open-pit copper, gold and silver mine in Papua New Guinea (PNG). The company is 100% PNG owned, with a 67% direct shareholding by the Independent State of PNG through Kumul Minerals (Ok Tedi) Limited and a 33% interest held by the people of the Western Province. Ok Tedi Chaiman Mark Stone said the transaction was a marker of PNG’s resurging mining sector. “The move to a multi-mine business is a significant step for Ok Tedi, reinforcing the company’s commitment to harnessing the region’s mineral assets and capitalizing on government support for long-term growth,” said Mr. Stone. “Papua New Guinea is a mineral rich land with many natural assets just waiting to be unlocked and the Misima mine, with its 3.8Moz resource together with potential exploration upside, is a great example of that.” “We hope that bringing Ok Tedi’s strong operational capability to another national resource will contribute to the Government’s Vision 2050 to empower our people and create wealth for our nation.” Managing Director and Chief Executive Officer Kedi Ilimbit spoke enthusiastically on the company’s growing footprint. “Ok Tedi is entering an exciting period of expansion as we look to secure Ok Tedi’s future and act on our Growth 2050 vision.” “We have many great projects on the horizon, from mine improvements to extend the mine life, to our ‘lighting up the west’ hydro-electrification strategy and other sustainability initiatives – the reopening of Misima gold is just one early step in the journey,” he said. Mr. Ilimbit further highlighted Ok Tedi’s significant community consultation experience, which he believed would ensure a smooth ownership transition. “Through this project we will boost social and business opportunities on Misima Island and ensure the benefits flow through into the communities, and also bring more economic value to our shareholders, the people of PNG.” Kingston Resources Ltd, an ASX-listed gold and copper company based in Australia, moved to 100% ownership of the Misima project in 2021 and completed a Definitive Feasibility Study (DFS) of the mine which confirmed the viability of a new long-life open pit mining operation at the site. The DFS assumed a 20-year mine life, annual throughput capacity of 6.1Mt and life of mine average annual gold production of 122koz. “We will now proceed with refining the DFS and environmental impact studies to accelerate our development and permitting plans and return Misima to its former glory as a successful producer and contributor to the local economy,” said Mr. Ilimbit. The acquisition will be funded by Ok Tedi’s existing cash flows, with a number of options to be explored for funding the development and construction of the operation. Completion is subject to customary consents being obtained from relevant stakeholders including the extension of the current principal exploration license and Independent Consumer and Competition Commission of PNG (ICCC) approval. The sale agreement contains other terms and conditions typical for an agreement of this nature including standard representations and warranties provided by both Ok Tedi and Kingston. “We look forward to working with the Mineral Resources Authority to facilitate the smooth processing of all regulatory requirements to get this magnificent national resource back up and running,” he said. The Misima mine was previously operated as an open pit mine from 1989 to 2004 by Placer Dome Inc., producing 3.7Moz of gold during its 15 years of operation. Treadstone Resource Partners acted as strategic and financial advisor, Allens acted as legal advisor, PWC acted as tax advisor, and AMC Consultants acted as technical advisor to Ok Tedi for the transaction.