Kingston Resources to form new gold, lithium group

Australian-listed Kingston Resources (KSN) is set to merge with Canadian-listed WCB Resources (WCB) to create a new Australasian focused gold and lithium development and exploration group.

The companies signed a binding heads of agreement for the merger and the new group will be Australian listed.

Once the merger is complete, WCB shareholders will hold around 31 per cent and existing KSN shareholders will hold around 69 per cent of the newly expanded KSN group.

According to Kingston, the directors of both companies unanimously supported the merger as the two companies will provide significant strategic and financial benefits to both sets of shareholders.

Under the merger, the new 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.

After the merger, Kingston will have the funds to complete the earn-in to 70 per cent of the Misima project, commence development studies, advance the Livingstone project and expand its lithium exploration in the Northern Territory.

KSN managing director Andrew Corbett said the merger “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”.

The merger is still subject to both Australian and Canadian regulatory approvals.