The newly merged, ASX-listed Kingston Resources recently announced that it has signed the Binding Heads of Agreement (HOA) with WCB Resources to create a new gold and lithium development and exploration group focused in Australia and Papua New Guinea.
According to the release, the Merger allows each WCB shareholder to receive 4.5 ordinary shares of KSN for each common share of WCB they hold in consideration for the transfer of those WCB shares to KSN (Merger). Upon completion, WCB shareholders will hold around 31 per cent and existing KSN shareholders will hold around 69 per cent of the newly expanded KSN group.
“The merger of Kingston Resources and WCB Resources creates a strong platform for shareholders to benefit from a substantial value uplift driven by an acceleration in exploration activity at Misima Gold Project, the emerging Livingstone Gold Project and exploration within the Group’s extensive lithium landholding,” said Mr Andrew Corbett, KSN Managing Director.
“We also look forward to the ongoing involvement of WCB President and CEO, Mr Cameron Switzer as Technical Advisor for the Misima Gold Project, where his in-depth, long-term understanding of the Misima Gold Project and strong local and national relationships will prove invaluable.”
Under the merger, the new exploration group will have WCB’s 49 per cent stake in the Misima gold project in Papua New Guinea. It will also have Kingston’s Livingstone gold project in Western Australia and its portfolio of lithium exploration tenements.
WCB President and CEO Cameron Switzer commented: “The attractiveness of a diversified Australasian development and exploration portfolio, and the focus on advancing the Misima Gold Project and emerging Livingstone Gold Project is set to benefit shareholders. The portfolio approach provides shareholders with exposure to both gold and lithium optionality moving forward”.
Both parties unanimously support the Merger, which was still subject to both Australian and Canadian regulatory approvals.