Kingston Resources Secures $95M Deal to Divest Misima, Sharpen Focus on Mineral Hill

Key Highlights:

• Kingston sells Misima Gold Project to Ok Tedi Mining for up to $95 million
• Immediate $50M cash injection to eliminate $15M debt and fund growth at Mineral Hill
• KSN shares surge 30.44% to $0.12; 44.58% one-year return
• Retains upside via 0.5% royalty on future Misima production beyond 500koz
  
   

Kingston Resources Ltd (ASX: KSN) surged more than 30% on Tuesday after announcing a landmark $95 million divestment of its flagship Misima Gold Project in Papua New Guinea to Ok Tedi Mining Ltd, a move that transforms the company into a well-funded, debt-free copper-gold producer focused solely on Australian operations.

The binding agreement includes an upfront $50 million cash payment, with additional $10 million tranches due 12 months post-completion and upon final investment decision (FID) for project development. Crucially, Kingston also retains a 0.5% gross revenue royalty on gold production after the first 500,000 ounces—providing a long-term financial link to Misima’s potential resurgence as a leading Asia-Pacific gold mine.

The market reacted swiftly to the announcement. Kingston’s stock closed at $0.12, up 30.44%, with over 20 million shares changing hands. The sharp revaluation reflects investor confidence in the company’s strategic pivot and the transaction’s capacity to unlock shareholder value—especially as the total consideration exceeds Kingston’s prior market capitalisation.

CEO Andrew Corbett hailed the deal as a turning point: “This transaction allows us to pay off all corporate debt, reduce overheads, and focus our full attention and capital on growth opportunities at Mineral Hill. We are now positioned as a clean, well-funded domestic copper-gold producer.”

The funds will accelerate exploration and development at Mineral Hill in NSW, where Kingston aims to commence underground copper production by FY26. Drilling will also expand into brownfield prospects like Parker’s Hill and Jack’s Hut, with broader greenfield exploration planned along the mineral-rich trend.

Kingston will also benefit from annual cost savings of up to $4 million, freeing up resources for exploration and growth. The sale, pending regulatory approvals, is expected to close in Q1 FY26.

The Misima divestment not only strengthens Kingston’s balance sheet but also aligns with its strategic ambition to grow into a multi-mine Australian producer with scale and sustainability at its core. The move marks a sharp pivot from legacy exploration toward production-driven value creation.