New Simberi’s processing and mining infrastructure on Simberi Island, Papua New Guinea.
St Barbara has agreed to sell its remaining interest in the New Simberi Gold Project to China’s Lingbao Gold Group for $453 million, ending the Australian gold company’s direct equity exposure to the Papua New Guinea operation and accelerating its shift toward projects in Nova Scotia.
The transaction comprises $410 million in cash consideration and a further $43 million representing St Barbara’s share of construction capital incurred between April 2026 and the signing of the agreement, according to reporting on the deal. St Barbara will also retain royalties over future production.
Completion is targeted for the March quarter of 2027, subject to regulatory approvals in China and Papua New Guinea and shareholder approvals from both companies, Mining.com.au reported.
The agreement is the next stage in a restructuring that began when Lingbao invested in New Simberi earlier in 2026. It gives Lingbao a larger economic and operational position in the project while leaving St Barbara with cash, royalties and a portfolio increasingly focused on Nova Scotia.
Key terms of the Simberi sale
| Item | Agreement detail |
|---|---|
| Buyer | Lingbao Gold Group |
| Headline transaction value | $453 million |
| Cash consideration | $410 million |
| Construction capital reimbursement | $43 million |
| Gold and silver royalty | 2.75% net smelter return |
| Tabar Islands exploration royalty | 1.5% on other minerals |
| Expected completion | March quarter of 2027, subject to approvals |
| Interim capital funding | Lingbao to fund St Barbara’s share until completion |
St Barbara will receive a 2.75% net smelter return royalty on gold and silver produced from New Simberi. It will also retain a 1.5% royalty on other minerals produced from exploration licences across the Tabar Island Group.
The company has valued the New Simberi royalty at a net present value of $212 million using a 5% discount rate and a $4,000-per-ounce gold price assumption. The project is forecast to produce about 2.2 million ounces of gold over an initial 13-year mine life, according to the transaction details reported by Mining.com.au.
The royalty structure allows St Barbara to retain exposure to the project without continuing to fund its construction or operating equity share. Under the agreement, Lingbao will fund St Barbara’s capital requirements from signing until completion. If the transaction fails because Lingbao does not satisfy conditions precedent, that funding would convert into a construction loan repayable over 24 months.
Lingbao moves toward greater Simberi control
The sale follows a strategic investment completed by Lingbao in April, when St Barbara received about A$389 million and Lingbao acquired majority ownership of the corporate structure holding the Simberi operation.
Before that investment, St Barbara had controlled the project. Following completion, St Barbara retained an interest of 50% minus one share in the Simberi holding company, with the asset accounted for as an associate rather than a controlled subsidiary.
A separate agreement with Papua New Guinea’s Kumul Mineral Holdings provides for the PNG entity to acquire a 20% interest in New Simberi. If that transaction is completed, St Barbara’s project interest would reduce to about 40% before the proposed sale to Lingbao. Lingbao would then hold the St Barbara interest, while Kumul would retain its separate 20% position.
The ownership changes are part of a broader funding and development plan for the New Simberi expansion. Mining Technology reported that the expansion has a construction cost of about US$333 million and is designed to process higher-grade sulphide ore.
The expansion is expected to increase mining throughput from roughly 10 million tonnes per year to about 20 million tonnes per year. The project plan targets production of more than 200,000 ounces of gold annually, with an anticipated all-in sustaining cost of between $1,100 and $1,400 per ounce, according to the company’s earlier development disclosures.
Processing equipment and infrastructure illustrate the capital intensity of island-based gold operations.
Why St Barbara is selling
The transaction changes St Barbara’s exposure to Simberi from an operating and funding interest into a cash and royalty position.
That distinction is important because the project remains capital-intensive. The expansion includes new processing capacity for sulphide ores, additional infrastructure and construction work in a remote island setting. Simberi’s location creates logistical requirements around marine transport, fuel, equipment, workforce movement and supplies.
Sedgman, which provided engineering, procurement and construction management services for the original processing plant, described the operation as including a carbon-in-leach facility, a remote ore source and a 2.7-kilometre aerial rope conveyor across mountainous terrain. Sedgman’s project profile provides additional background on the infrastructure supporting the mine.
For St Barbara, the sale reduces direct exposure to construction execution, operating costs, weather, logistics and regulatory risk in Papua New Guinea. It also removes the need to contribute additional equity capital after signing, assuming the transaction proceeds as planned.
Managing Director Andrew Strelein said the agreement “crystallises” value for shareholders and allows St Barbara to focus on its Nova Scotia gold projects and the surrounding 15-Mile Processing Hub, according to the company’s transaction announcement as reported by Mining.com.au.
St Barbara said its pro forma assets after completion would include approximately $880 million in cash, the 15-Mile Processing Hub Project, the Touquoy Restart Project and its royalty portfolio, with no debt or hedging.
The company declared a fully franked dividend of A$0.05 per share in August and said its board was considering a further special dividend of about A$0.13 per share after completion of the Simberi transaction. It is also considering an on-market buyback of up to 100 million shares, subject to the updated 15-Mile prefeasibility study and market conditions.
Those capital-management options remain subject to board decisions and should not be treated as committed distributions.
Nova Scotia becomes the centre of the strategy
The sale places St Barbara’s Canadian assets at the centre of its next development phase.
The company’s Nova Scotia portfolio includes the 15-Mile Processing Hub Project and the planned restart of the Touquoy operation. St Barbara’s FY26 financial report said the 15-Mile project had demonstrated the potential for more than 100,000 ounces of annual production over a mine life exceeding 11 years, subject to further studies, permitting and development decisions.
The Touquoy Restart is designed to process existing low-grade stockpiles using established infrastructure. St Barbara has said the restart could operate for about 13 months while supporting rehabilitation and closure activities at the site.
The strategic shift also changes the company’s financial profile. St Barbara’s FY26 results showed a statutory profit after tax of A$490 million, driven largely by a gain of about A$499 million from the earlier deconsolidation of New Simberi. Underlying results remained weaker, with the company reporting an underlying net loss after tax of A$29 million for the year.
The FY26 financial report reported cash of A$475 million at June 30, 2026, before the proposed sale. The report also showed that St Barbara ended the year with no significant debt and no gold hedging.
The company’s financial position gives it greater flexibility to fund Canadian studies, permitting, exploration and project development. However, those projects carry their own risks, including environmental assessment, community engagement, reclamation obligations, construction costs and execution timelines.
St Barbara’s Nova Scotia strategy is centred on processing infrastructure and project consolidation.
Approvals and remaining risks
The Simberi agreement still requires approvals in two jurisdictions as well as shareholder approval from both St Barbara and Lingbao. The transaction is therefore not yet complete.
St Barbara also retains involvement in a Papua New Guinea tax matter. Its FY26 report said Simberi Gold Company Limited had received a tax assessment from the PNG Internal Revenue Commission totalling PGK523 million, or approximately A$173 million. The company has objected to the assessment in full and has not recognised a provision, saying it does not expect a material payment to result.
Under the earlier Lingbao arrangements, St Barbara may retain contingent exposure to certain parts of the assessment through indemnity provisions. The company said it would continue to manage discussions with the PNG tax authority.
For Lingbao, the immediate challenge is delivering the sulphide expansion in a remote operating environment. The project’s value depends on construction performance, commissioning, recovery rates, gold prices, operating costs and the successful conversion of the mine plan into sustained production.
For St Barbara, the key test is whether the cash proceeds and royalty exposure can be converted into a durable Nova Scotia development platform rather than a temporary balance-sheet uplift.
The transaction marks a clear change in direction: St Barbara is monetising a major Papua New Guinea gold interest while preserving a long-term royalty stream, and Lingbao is assuming greater responsibility for the capital and execution required to expand New Simberi.
For investors and mining-sector decision-makers, the deal is another example of how ownership structures are being reshaped around funding capacity, jurisdictional risk and the capital demands of long-life gold projects. Related coverage is available in Skillings’ reporting on mining M&A activity.
