ASX-listed Kingston Resources has received the first A$50-million cash payment from Ok Tedi Mining following completion of the previously announced sale of its Misima gold project in Papua New Guinea.

This forms part of a A$95-million divestment deal, providing Kingston with financial flexibility and a clean balance sheet as it turns its focus to domestic copper and gold opportunities.

The transaction terms include an initial A$50-million received on completion, a further A$10-million due 12 months post-completion, and another A$10-million contingent on a positive final investment decision to develop Misima.

Kingston also retains upside exposure to future production through a 0.5% gross revenue royalty on all gold produced at Misima after the first 500 000 oz. Ok Tedi has the option to buy back the royalty for A$25-million.

MD Andrew Corbett said on Friday that the funds significantly strengthened Kingston’s position as it shifted toward growth.

“We are pleased to have received the first A$50-million in cash from the Misima transaction, which positions Kingston as a debt-free and well-funded Australian copper and gold producer,” he said. “The completion of this sale has unlocked substantial value for our shareholders and enables us to focus squarely on growing Mineral Hill and expanding our operating footprint.”

A portion of the proceeds has been used to fully repay the company’s A$15-million debt facility. The remaining capital will be directed toward advancing exploration and development initiatives at Mineral Hill in New South Wales, where the company is targeting near-mine extensions and regional drill-ready prospects. Expansion studies and development planning aimed at initiating copper production in 2026 are also under way.

Corbett added that the Misima sale not only provided immediate liquidity, but preserved Kingston’s strategic exposure to long-term value creation through the deferred payments and royalty arrangement.

“Our partnership with Ok Tedi ensures that Misima is in capable hands, with the potential for a near-term development decision in a favourable gold price environment,” he said. “Kingston retains ongoing exposure to the upside at Misima through the deferred payment and royalty structure.”

With the company now debt-free, well-capitalised, and focused on copper production growth, Kingston is actively evaluating further Australia-based acquisition and development opportunities. “We are now fully focused on advancing our core projects at Mineral Hill and evaluating new growth initiatives that align with our strategy of being a multi-asset producer delivering long-term shareholder returns,” Corbett said.

The company expects the next A$10-million tranche from the Misima deal to be received in mid-2026.