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Kingston Resources - Livingstone Gold Project sold for up to $10m

Sale provides Kingston with ongoing project exposure and an immediate cash injection

Key Points:

• Kingston has entered into a binding agreement to sell its 75% interest in the Livingstone Gold Project in Western Australia to Metal Bank (ASX: MBK) for total consideration of up to $10 million.
• Kingston retains significant exposure to future exploration upside at Livingstone through its holding of shares and options in Metal Bank, and future milestone payments.
• The total consideration is comprised of cash, shares, options and milestone payments as below:
-- $2.5 million cash consideration
-- $1.0 million in MBK equity (125,000,000 shares)
-- 62,500,000 options in MBK exercisable at 1.6c
-- $1.5 million cash payment upon the identification of a 100koz gold equivalent JORC Resource or 12 months post-completion, whichever is sooner
-- $1.0 million cash payment upon the identification of a 250koz gold equivalent JORC Resource
-- $4.0 million cash payment upon the identification of a 500koz gold equivalent JORC Resource
• The transaction is subject to customary terms and conditions and approval by Metal Bank shareholders. The vote is scheduled to take place on 29 November 2021, with transaction completion anticipated shortly thereafter.
• The funds realised from this sale will further strengthen the Company’s treasury position and be used for ongoing Definitive Feasibility Study and exploration work at the Misima Gold Project.

Kingston Resources Limited (ASX: KSN) (Kingston or the Company) is pleased to announce that it has entered into a binding agreement with Metal Bank Limited (Metal Bank, ASX: MBK) to acquire its 75% interest in the Livingstone Gold Project (Livingstone), located in Meekatharra, WA (the Transaction).

The Transaction represents an opportunity for Kingston shareholders to realise significant value for the exploration work completed at Livingstone to date while retaining significant exposure to its future exploration upside as Metal Bank seeks to expand upon the existing gold resource of 49,900 oz (JORC 2004). Kingston looks forward to becoming a shareholder of Metal Bank and to participating in the future growth of the Livingstone asset as it progresses under their management. 

For more information, download the attached PDF.

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