St Barbara Limited has signed a binding agreement to sell its remaining interest in the New Simberi Gold Project in Papua New Guinea to Lingbao Gold Group. Under the transaction, St Barbara will receive A$410 million in cash consideration alongside a A$43 million cash repayment covering its share of construction capital contributed between April 2026 and the agreement's signing. Lingbao will also fund St Barbara’s share of capital requirements until completion.

The arrangement remains conditional on Chinese and Papua New Guinea regulatory approvals, alongside respective shareholder approvals, with completion targeted for the March quarter of 2027. Upon closing, Lingbao will grant St Barbara a 2.75% net smelter return royalty on future gold and silver production from New Simberi and a 1.5% net smelter return royalty across the Tabar Island Group exploration licences. Based on the initial life-of-mine plan forecasting 2.2 million ounces of gold production over 13 years, the New Simberi royalty carries an estimated net present value of A$212 million at a 5% discount rate and a US$4,000 per ounce gold price assumption.

St Barbara previously held a 100% interest in Simberi before executing strategic joint venture agreements with Lingbao and Kumul Mineral Holdings Ltd in December 2025. The current divestment completely replaces that previous ownership structure.

The transaction elevates St Barbara’s expected pro-forma cash position upon completion to approximately A$880 million, up from A$475 million reported at the end of the 2026 financial year. The company carries zero debt or hedging.

"This transaction will crystallise substantial value for St Barbara shareholders and allows the Company to focus on the development of the Nova Scotia gold projects and the attractive exploration portfolio surrounding the 15-Mile Processing Hub. The Company's interest in New Simberi has never been fully reflected in the Company's share price and this transaction resolves that situation at a logical point for Lingbao to take full control of New Simberi," said Andrew Strelein, Managing Director and CEO.

"Subject to completion of the transaction, the Board will consider a further fully franked dividend of approximately A$0.13 per share - on top of the fully franked A$0.05 per share already declared. The Board reconfirms that it will also be considering a decision to execute an on-market share buy-back of up to 100 million shares after the release of the updated Pre-Feasibility Study for the 15-Mile Processing Hub Project due later this month," said Andrew Strelein, Managing Director and CEO.

St Barbara submitted the initial project description for the 15-Mile Processing Hub in Nova Scotia to the Impact Assessment Agency of Canada in June 2026, targeting a final investment decision in mid-2027.

Read the full announcement: St Barbara to Sell Simberi Interest to Lingbao