Gilbert + Tobin has advised Kumul Mineral Holdings Limited (Kumul) on its strategic acquisition of a 20% interest in the Simberi Gold Project from Simberi Gold Company Limited (“SGC”) (a subsidiary of St Barbara Ltd (ASX: SBM) (“St Barbara”) for consideration of $100 million.
Following completion of the acquisition, Kumul, through its subsidiary Eda Minerals Ltd, will enter into an unincorporated joint venture with SGC for the purposes of developing and operating the Simberi sulphide expansion project.
St Barbara’s subsidiary, St Barbara Mining Pty Limited, will provide non-recourse loan funding, at commercial interest rates, to Kumul to cover the full acquisition consideration and Kumul’s share of construction costs. The loan funding will be repaid from Kumul’s future share of precious metals revenues from remnant oxide mining and from the sulphide expansion operation.
The investment by Kumul marks an important development for the Simberi project. In its role as the State Nominee for Papua New Guinea’s ("PNG") mineral interests, Kumul’s involvement aligns national objectives with the project’s growth and strengthens economic engagement across the PNG resources sector.
The G+T team advising Kumul was led by partner Michael Blakiston and supported by lawyers Sam Harlick and Josh Cohenca.
Partner, Michael Blakiston said:
Kumul’s investment in the Simberi Gold Project represents a meaningful strategic partnership that aligns the interests of national stakeholders with the long-term development of this significant resource. We’re pleased to have worked with Kumul on this transaction and to support their continued role in advancing the Simberi sulphide expansion and broader economic participation in Papua New Guinea’s mining sector.
