Australia's St Barbara to divest Canada gold operations (updated)

St Barbara

11/02/2025 22:20

(Adds details, background from paragraph 2 onwards)
       Feb 12 (Reuters) - Australian gold miner St Barbara
 SBM.AX  said on Wednesday it was planning to separate its
Atlantic Gold Operations in Nova Scotia, Canada via a sale or
vend-in of its assets to another party, or a demerger into a
separate Canada-listed firm.
    The Atlantic Gold Operations include the miner's 15-Mile,
    Beaver Dam and Cochrane Hill projects, along with its
Touquoy processing plant.
  
    After the divestment, the miner will focus on its Simberi
Gold operations and the expansion of its Simberi Sulphide
Project in Papua New Guinea, it said.
         "The decision to separate Atlantic from St Barbara is
underpinned by the... potential of the Atlantic projects under a
Canadian listed company with a local leadership team... to
benefit from being closer to regulators," CEO Andrew Strelein
said.
  
        Proceeds from the divestment could be distributed among
shareholders or used for the Simberi Sulphide expansion, the
Perth-based miner said.
  
    The company expects to complete the divestment by the first
half of fiscal 2026.
    

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Anil
D'Silva)
 ((Aaditya.GovindRao@thomsonreuters.com;))