Kingston acquires the Mineral Hill Mine in NSW for A$22.7m


Kingston Resources has reached a binding agreement with US-based Quintana MH Holding to acquire the Mineral Hill Mine in NSW.

Located 65km north of Condobolin, Mineral Hill boasts extensive gold and copper resources, two processing circuits, current gold production, a number of developed polymetallic deposits and extensive exploration upside.

According to Kingstone’s statement, Mineral Hill is currently ramping up production from the processing of existing tailings, with Production forecast to total 40,000 ounces at an average all-in sustaining cost of A$1,550-1,650/oz over 29 months.

The company’s Managing Director, Andrew Corbett, said the A$22.7 million transaction represents a unique opportunity for Kingston to accelerate its transition to an operating mining company.

“We are very excited to be able to acquire a fully-developed gold and copper project in a Tier-1 location that has recently restarted operations with immediate gold production,” Mr Corbett said.

“The attractive deal metrics, near-term cash-flow and significant gold and copper exposure make for a fantastic strategic fit with our cornerstone asset, the 3.8Moz Misima Gold Project in PNG.

“Misima is a large-scale, long-life and low-cost development project which, combined with the near-term production profile and extensive exploration opportunities at Mineral Hill, provides Kingston with an ideal platform for growth.”

According to Mr Corbett, the operation is expected to deliver positive free cash-flow by early 2022.

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