Shares in St Barbara Ltd (ASX: SBM) are on the rise on Wednesday. This comes after the gold miner released a major update on its Simberi Gold Project in Papua New Guinea (PNG).
The company's shares were lifted from a trading halt this morning following the announcement. At the time of writing, the St Barbara share price is up 4.05 % to 77 cents, after closing at 74 cents before the halt on Tuesday.
Simberi mining lease extension approved
In an ASX release today, St Barbara confirmed that the Simberi Mining Lease (ML 136) has been formally extended to 2038.
The approval relates to the New Simberi Gold Project and provides long-term certainty over the company's most important operating asset. The extension aligns with the current mine plan and is based on proven and probable ore reserves outlined in the Simberi feasibility study.
This was one of the key issues holding the project back and now allows St Barbara to move ahead with its next phase.
What the approval unlocks
St Barbara has been planning a major expansion at Simberi, including a move into sulphide ore mining. That expansion is expected to significantly lift gold production and extend the mine's life.
According to the company, the mining lease extension was an important requirement for funding and ownership changes linked to the project. With the lease now extended, St Barbara expects to move toward a final investment decision later in FY26.
The company has previously said the expanded Simberi operation could produce more than 200,000 ounces of gold each year. That would mark a significant increase from current production levels.
Strategic partners now move closer
Today's approval also satisfies a key condition tied to previously announced agreements with Lingbao Gold Group and Kumul Minerals Holdings, PNG's state-owned mining entity.
Under those agreements, Lingbao is set to acquire a 50 % interest in St Barbara Mining, while Kumul is expected to take a 20 % stake in the Simberi Gold Project. Both transactions were dependent on the mining lease extension being finalised.
St Barbara said the lease extension allows these transactions to move forward as planned.
What happens next
Alongside the lease update, St Barbara also released its quarterly results, showing Simberi continues to generate cash despite recent operational challenges.
With the lease extension now locked in, investor focus is likely to shift to funding, final approvals, and timing around the project's expansion.
Foolish takeaway
Today's update gives investors clearer visibility on the path ahead, but several milestones still need to fall into place. The next focus will be funding arrangements and progress toward a final investment decision.
Investors are likely to look ahead to the company's half-year results next month for further detail.
