-- St Barbara has entered into binding agreements (the “Agreed Kumul JV Transaction”) with a wholly owned subsidiary of Kumul, the State Nominee for Papua New Guinea’s (“PNG”) share of minerals projects within PNG, for Kumul to acquire a 20% interest in Simberi via the establishment of an unincorporated joint venture in Simberi for A$100 million.
Commenting on the agreement with Kumul, Managing Director and CEO Andrew Strelein said:
“St Barbara welcomes Kumul as a joint venture partner at Simberi. We share a commitment with the PNG Government, that the value of the nation’s resources are to be shared equitably for the benefit of PNG’s people.”
“Kumul’s participation in Simberi aligns the interests of St Barbara and our key stakeholders. We look forward to a long and productive joint development of the Simberi Expansion Project with Kumul, and Simberi’s development partner Lingbao Gold Group also announced today1.”
“St Barbara has engaged extensively with both the Government, community stakeholders and landowners to develop a benefits sharing model for Simberi that not only meets but exceeds the PNG Government’s goals of sharing the value from PNG resource developments.”
“This agreement is a key milestone for us as we approach a Final Investment Decision for the Simberi Expansion Project, which is targeted for Q3 FY26.”
Background and transaction overview
Kumul is the State Nominee for the acquisition and holding of PNG’s share of minerals projects within PNG. Kumul holds an interest in a number of mining projects in PNG including a 67% majority interest in Ok Tedi, a 35% interest in the Porgera Joint Venture, a 15% interest in the Solwara 1 Project and a strategic shareholding in Tolu Minerals.
Kumul is currently engaging with the PNG State Negotiating Team for the exercise of a 30% equity option in the Wafi- Golpu Project.
The Agreed Kumul JV Transaction follows St Barbara’s entry into an MOU with Kumul on 9 December 2024, where the parties agreed to explore the potential acquisition of a 20% interest in Simberi and farm-in to earn up to 20% of the Tabar Islands Exploration Licenses2. After an extensive period of due diligence and negotiation, Kumul and St Barbara have reached agreement on the terms of the Agreed Kumul JV Transaction whereby Kumul will acquire a 20% interest in an unincorporated joint venture over Simberi for A$100 million. The Agreed Kumul JV Transaction is subject to customary conditions precedent such as PNG regulatory approvals, including from Independent Consumer and Competition Commission (ICCC) clearance and NEC National Executive Committee (NEC), in addition to the renewal of the Simberi Mining Lease and St Barbara’s subsidiary, Simberi Gold Company Pty Ltd, making a final investment decision.
St Barbara’s subsidiary, St Barbara Mining Pty Limited (“SBML”), will provide non-recourse loan funding, at commercial interest rates, to Kumul covering the full A$100 million acquisition consideration and subsequently covering Kumul’s share of construction costs. Loan funding provided by SBML will be repaid from Kumul’s future share of precious metals revenues from the remaining mining of remnant oxide mining and from the Simberi Expansion Project.
St Barbara and Kumul are also finalising documentation for Kumul to farm-in to earn 20% of the Tabar Islands Exploration Licenses with the expectation of forming a separate Tabar Islands Joint Venture to progress exploration of these exciting prospects3.
The introduction of Kumul as a joint venture participant in Simberi, together with the proposed community benefits agreement package with an enhanced royalty meets and exceeds the objective of the PNG Government to achieve greater PNG investment in, and benefits sharing from, future resource development2.
Adviser
St Barbara’s legal adviser is Allens.
Authorised by
Andrew Strelein
Managing Director and CEO
For more information
Investor Relations
David Cotterell
General Manager Business Development & Investor Relations
T: +61 3 8660 1959 M: +61 447 644 648
Media Relations
Paul Ryan / Russell Quinn
Sodali & Co.
M: +61 409 296 511 / +61 403 322 097
Release ID: 89178356
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