PERTH (miningweekly.com) – ASX-listed Kingston Resources has struck an agreement with fellow-listed Metal Bank to sell its 75% interest in the Livingstone gold project, in Western Australia, for A$10-million.
The transaction would be undertaken through the sale of all the issued capital in Kingston subsidiary Westernx, which is the holding company for the Livingstone project.
The A$10-million consideration will be paid in A$2.5-million cash along with A$1-million worth of Metal Bank shares, which amounted to 125-million shares. A further 632.5-million options in Metal Bank would also be issued, exercisable at 1.6c each.
A A$1.5-million cash payment will be due on the identification of 100 000 oz of gold equivalent resource, or 12 months following the completion of the transaction, with a further A$1-million due on the identification of 250 000 oz of resource, and a further A$4-million on the identification of 500 000 oz of gold equivalent resource.
Kingston told shareholders on Monday that the transaction would allow shareholders to realise significant value from the exploration work completed at Livingstone to date, while retaining significant exposure to future exploration upside.
“We are pleased to have reached agreement a well-credentialed, well-funded and capable counter-party in Metal Bank to divest the Livingstone gold project on attractive terms,” said Kingston MD Andrew Corbett.
“With the increased level of activity that is now underway at the Misima gold project as we focus on delivering the definitive feasibility study and approvals early next year, the board decided that shareholders would realise greater value through the sale of Livingstone in a structure which incorporates ongoing exposure to the project’s upside.”