LINGBAO GOLD (03330.HK): Royalty on Remaining 50%-1 Stake Capped at A$244m

NewTimeSpace News: On 13 November 2026, Lingbao Gold Group Company Ltd. (stock code: 3330) published a supplemental announcement on its discloseable and connected transaction to acquire the remaining 50%-1 share stake in the target company, providing further details on the commercial rationale, consideration structure and royalty obligations.

Total consideration comprises an initial purchase price of A$410 million, payable by the buyer in immediately available funds on completion, and royalty obligations under which the target grants the seller two rights starting on 1 July 2027: a Simberi royalty of 2.75% NSR on gold and silver products from the Simberi mine (ML136), and a Tabar Islands royalty of 1.5% NSR on minerals produced under exploration licences EL2462 and EL609.

Both royalties are production-linked and payable only from cash flow generated by the future production and operation of the relevant mining assets, settled by the target without involving onshore or offshore foreign exchange settlement. In an extreme stress test, the independent valuer derived a maximum NSR value of A$244 million, which will be reflected in the royalty deed to be signed on completion and is used by the Company only when calculating consideration ratios under Rules 14.07, 14.15 and 14.22.

The appraised intrinsic value of the remaining stake was US$400 million, or about A$554 million, after deducting royalty obligations, and about A$679 million before royalties. The cash consideration of A$410 million represents a discount of about 26.0% to the former, saving about A$144 million upfront, while the difference between total intrinsic value and cash consideration of about A$269 million exceeds the stressed royalty cap. The board considers the cash-plus-royalty structure superior to an all-cash offer, preserving working capital for the Simberi sulphide expansion and transferring future production and gold price downside to the seller.