OK Tedi Mining acquires Misima gold and silver project

Ok Tedi Mining Limited (OTML) has entered into a binding agreement with Kingston Resources Limited, to acquire the Misima Gold and Silver Project.

OTML in a statement said their initial acquisition will cost about $60 million [Australian dollars], or about K158.5 million, but this will be increased further by another contingent payment of $35 million [Australian dollars], or about K92.4 million.

The Misima Gold and Silver Project, which is in the Milne Bay Province, has a current mineral resource estimate of 3 point 8 Million ounces of gold and 22 point 1 Million ounces of silver.

Ok Tedi Chairman Mark Stone said, the transaction marks PNG’s resurgence in the mining sector, and the move to a multi-mine business is a significant step for Ok Tedi.

Mr. Stone said that the acquisition reinforces the company’s commitment, to harnessing the region’s mineral assets and capitalising on government support, for long-term growth. 

He also said that they hope that the acquisition by OK Tedi, will bring their operational capability to another national resource, that will contribute to the Government’s Vision 2050, to empower people and create wealth for the nation. 

The Misima mine was previously operated as an open pit mine, from 1989 to 2004, by Placer Dome Incorporated, and was producing 3.7 million ounces of gold, during its 15 years of operation.