St Barbara Limited (ASX: SBM) Advances Simberi Mining Lease Renewal
Mining Lease Early Renewal Application Accepted
St Barbara Limited (ASX: SBM) has received confirmation that its application for an early renewal of the Simberi Mining Lease has been accepted by the Mineral Resources Authority of Papua New Guinea (PNG). The next phase includes Warden Court hearings set for Q3 FY25, in compliance with the PNG Mining Act, where final recommendations will subsequently be made to the Minister for Mining.
Enhanced Royalty Proposal and MOU with Kumul
The company has proposed an enhanced net profits-based royalty, anticipated to be introduced in a new Memorandum of Agreement (MOA) with stakeholders. This initiative includes a royalty payment calculated as the greater of a 10% Net Profits Royalty (NPR) or a 3% Net Smelter Return (NSR), compared to the current 2% NSR. Additionally, St Barbara has signed a Memorandum of Understanding (MOU) with Kumul Mineral Holdings Limited, which is designed to negotiate Kumul acquiring up to a 20% interest in an unincorporated joint venture over the Simberi Mining Lease and exploration licenses.
CEO Insights on Development Progress
Andrew Strelein, Managing Director and CEO of St Barbara, expressed that “the registration of Simberi’s Mining Lease early renewal application, the proposed enhanced net profits royalty, and the MOU with Kumul are all significant steps forward in the development of the Simberi Sulphide Expansion.” He added that these developments highlight the project’s importance to PNG, as evidenced by support from local stakeholders.
Preparations for Sulphide Expansion
St Barbara is expediting various components of the Simberi Sulphide project, issuing tenders for a new 5.8MW ball mill and initiating geotechnical drilling at key locations. Furthermore, an upgraded construction camp is set to be shipped to Simberi with installation planned for Q3 FY25, aimed at accommodating the anticipated workforce necessary for the enhanced project.
St Barbara remains focused on advancing its Simberi operations, with both the early renewal process and MOU with Kumul presenting promising developments for future growth and stakeholder partnerships.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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