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Highlights

  • Pearl Gull Iron entered into a binding agreement to sell the Cockatoo Island Project for AUD 4.5 million cash, a 4% equity interest in Crestlink, and royalties on extracted materials.

  • The transaction is subject to shareholder and regulatory approvals, with completion expected in Q4 2025.

  • Pearl Gull shares surged nearly 66% to AUD 0.029 per share following the announcement.

Pearl Gull Iron Limited (ASX:PLG) saw its share price rise by almost 66% to AUD 0.029 per share on 4 September 2025, following the announcement of a binding agreement to sell its flagship Cockatoo Island Project.

Details of the Transaction

The company executed a binding Asset Sale and Purchase Agreement with Buccaneer Resources Pty Ltd, Crestlink Pty Ltd, and JCA WA Nominees Pty Ltd to divest 100% of its interest in the Cockatoo Island Project, including the associated tenements, plant, infrastructure, and related contracts.

The proposed consideration includes:

  • AUD 4.5 million in cash payable in instalments,

  • a 4% equity interest in Crestlink Pty Ltd, and

  • royalties on extracted materials from the project.

The transaction is subject to shareholder approval, with a general meeting expected in late October 2025. Completion is targeted for Q4 2025.

Use of Proceeds

Pearl Gull’s Board stated that the sale represents a positive outcome given the early-stage nature of the Cockatoo Island Project and the capital requirements needed for its progression. The cash consideration will support the company’s strategy of identifying new projects and growth opportunities aimed at generating shareholder value.

Despite the sale, the company will retain exposure to the project through its equity interest in Crestlink and royalty entitlements. Pearl Gull confirmed it will remain listed on the ASX and will continue to pursue future exploration and acquisition opportunities.

Conditions and Structure

The cash component of the transaction will be paid in four instalments:

  1. AUD 100,000 (already paid and held in escrow),

  2. AUD 500,000 (to be paid on execution and held in escrow),

  3. AUD 1.9 million (at completion), and

  4. AUD 2.0 million (12 months post-completion).

In addition, Pearl Gull will be entitled to two royalty streams:

  • 2% of the free-on-board value of all iron ore sold by Buccaneer, and

  • AUD 0.50 per tonne of ballast extracted and used by Crestlink for its multi-user supply base on Cockatoo Island.

The proposed deal is contingent on several approvals, including shareholder consent, ministerial approval under the Mining Act, and clearance from the Foreign Investment Review Board (FIRB).

About the Purchasers

Buccaneer, a wholly owned subsidiary of Crestlink, is focused on strategic mining opportunities in Western Australia. Crestlink is undertaking a phased development of a multi-user supply base on Cockatoo Island, with its initial AUD 100 million development granted major project status by the WA government in 2019. JCA WA Nominees, Crestlink’s largest shareholder, holds an 88% ownership stake.