Kingston Resources Ltd (ASX:KSN) has taken an important step towards its objective of becoming a substantial Asia-Pacific gold producer after executing an agreement with joint venture partner Pan Pacific Copper Co Ltd for full ownership of the Misima Gold Project.
Through a non-binding term sheet, Kingston is set to move to 100% ownership of the flagship PNG project, increasing its exposure to a world-scale gold resource base and high-quality development opportunity.
The company is undertaking an exploration and resource expansion drilling program, targeting near-surface mineralisation to define early mill feed ahead of mining studies set to begin in 2020.
“Delighted to take the next step forward”
Managing director Andrew Corbett said: “We would like to thank PPC for their partnership at Misima and 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 delighted to take the next step forward for Kingston, with a transaction that delivers 100% ownership of this outstanding gold development opportunity to the company.”
A non-binding term sheet has been executed with PPC, with the transaction subject to finalisation of documentation, which is expected in early 2020.
Following the execution of final documentation, an initial payment of $500,000 will be paid by January 31, 2020, with the balance to be paid by April 30, 2020.
PPC commented: “PPC considers the Misima Gold Project to be a prospective exploration project, however, as a result of an internal review of our global exploration activities, PPC has concluded that it is outside our company focus and PPC has made the decision to exit the project.
“We wish the Kingston team all the best in advancing the Misima Gold Project towards production.”
Kingston and PPC will now finalise a Share Purchase Agreement.