Steinepreis Paganin (Steinpag) is pleased to have advised Lingbao Gold Group Company Ltd. (Lingbao Gold) on its A$370 million acquisition of a 50% plus one share interest in St Barbara Mining Pty Ltd (SBML) (a wholly owned subsidiary of ASX-listed, St Barbara Limited (St Barbara)), which, immediately post completion, will own 80% of the Simberi Gold Operations in Papua New Guinea.

SBML has also entered into a joint venture agreement and other transaction agreements with Kumul Mineral Holdings Ltd (Kumul) whereby Kumul will acquire 20% of the Simberi Gold Operations for A$100 million, with the other 80% retained by SBML, to form an unincorporated joint venture to develop the Simberi Expansion Project.

Upon completion of the transactions, Lingbao and St Barbara will each have a 50% interest in SBML, with the underlying assets being an 80% interest in the Simberi Joint Venture, the Tabar Islands Exploration Licenses and a A$100 million receivable from Kumul.

Completion of the transactions is subject to satisfaction of several deal conditions, in respect of which Steinpag is advising Lingbao Gold.

Lingbao Gold is a major Chinese gold producer which listed on the Hong Kong Stock Exchange (HKG: 3330) in January 2006 and has a current market capitalisation of approximately US$3.5 billion. Lingbao operates a fully integrated business model across exploration, mining, beneficiation, smelting, refining and trading of gold, with its asset base located across five Chinese provinces and the Kyrgyz Republic.

The Steinpag team was led by Partner Peter Wall and Senior Associate Nicholas Barclay, with support from Associate Hugo Shervington.

This transaction is another example of Steinpag’s market-leading work in Australian resources M&A.