Key points
- St Barbara to receive A$453 million in cash
- Transaction expected to complete in March 2027
- St Barbara to retain royalties on New Simberi and Tabar Islands
Full summary
St Barbara Limited (ASX: SBM) has signed an agreement with Lingbao Gold Group to sell its remaining interest in the New Simberi Gold Project to Lingbao. The transaction is expected to complete in the March quarter of 2027, subject to regulatory and shareholder approvals. St Barbara will receive A$410 million in cash, a repayment of A$43 million for prior capital expenditure, a 2.75% net smelter return royalty on future gold and silver production from New Simberi, and a 1.5% royalty on minerals from the Tabar Island Group exploration licenses. The transaction is expected to simplify St Barbara's portfolio, allowing the company to focus on the Nova Scotia gold projects and exploration opportunities.
Guidance
St Barbara expects to receive A$453 million in cash from the transaction with Lingbao.
Outlook
St Barbara is considering a fully franked special dividend of approximately A$0.13 per share, subject to transaction completion and other considerations.