Estrella Resources Limited (ASX:ESR) announced on 6 October 2026 that it has entered into a formal binding agreement to divest 100% of its Spargoville nickel rights to Astral Resources NL. Under the transaction, Estrella is to receive 20,000,000 Astral shares at a deemed issue price of $0.15 per share, for total consideration of $3,000,000.

The transaction remains subject to the satisfaction or Waiver of certain conditions.

About Estrella Resources

Estrella Resources Limited has exploration projects and mineral rights in Western Australia but is currently focusing its efforts on exploring its portfolio of tenements in Timor-Leste, which are known there as concessions. The company has its office in Perth, Western Australia.

To date, Estrella reports that it has discovered manganese mineralisation at several sites in Timor-Leste. The Ira Miri deposit has been excavated to extract a 27,000 tonne bulk sample, which is to be sold as a market appraisal exercise, and exploration for manganese continues. The company has also identified several occurrences of copper mineralisation and says it is actively pursuing copper and gold potential. Prospects shown on its concession map include manganese prospects at Iramiri, Sica, Lalena, Dasidara, Samalari, Afabuti and Soru, a copper-gold prospect at Luro, and limestone prospects at Werumata and Sagadati.

The company's concession map shows eleven numbered exploration and evaluation licences and three reconnaissance permits across its Timor-Leste portfolio, with the manganese, copper-gold and limestone prospects marked against municipality boundaries, major roads and urban and rural roads.

Latest Development: Divestment of Nickel Rights (6 October 2026)

The binding Transaction Agreement is with Mandilla Nickel Pty Ltd, a Wholly Owned Subsidiary of Astral Resources NL. It covers the divestment of Estrella's rights and interests in nickel at the West Kambalda Tenements, which comprise tenements M15/395, M15/703, L15/255 and L15/128, and at the Spargos Tenements, which comprise tenement M15/1828. These nickel rights are collectively described as the Nickel Rights and are held by WA Nickel Pty Ltd, a wholly owned subsidiary of Estrella.

Under the agreement, the buyer will acquire all of the seller's legal and beneficial interest in the Nickel Rights. In return, the buyer will issue, or cause to be issued, $3,000,000 worth of fully paid ordinary Astral shares to the seller. The deemed issue price is $0.15 per share, which equates to 20,000,000 consideration shares. Of these, 10,000,000 shares are to be voluntarily escrowed for six months from completion. The company said the Transaction Agreement otherwise contains terms considered standard for agreements of this nature.

Completion is conditional on a number of matters, including Astral obtaining all necessary Shareholder and regulatory approvals or waivers under the Listing Rules, the Corporations Act or other applicable law so that it can issue the consideration shares. The parties and any relevant third party must also enter into any agreement required to complete the transaction, including a deed of assignment and assumption, and the parties must obtain all necessary shareholder, regulatory or third-party approvals or waivers to complete the transaction lawfully.

The announcement's forward-looking statement notes that statements about planned exploration involve risks and uncertainties and that no assurance can be given that further exploration will result in the estimation of a Mineral Resource. The compliance statement confirms the company is not aware of new information that materially affects previously reported exploration results or Mineral Resources.

Managing Director Robert Mencel said the company is pleased to reach a binding agreement that allows Estrella to increase its focus on its flagship tenements in Timor-Leste, while retaining Investment upside from the company's existing suite of assets. The announcement was approved for release by the board.

Risks and Uncertainties

Completion is not assured. It depends on Astral obtaining shareholder and regulatory approvals or waivers to issue the shares, as well as on third-party agreements and approvals. The announcement does not provide a completion date.

The consideration is paid in Astral shares rather than cash, so its value depends on the Market Price of those shares, which can differ from the deemed issue price of $0.15. Half of the shares are subject to a six-month voluntary Escrow after completion.

After completion, Estrella will no longer hold the Spargoville nickel rights. The company states its efforts are concentrated on Timor-Leste, where manganese and copper-gold exploration is at an early stage and the company has not reported a Mineral Resource in this announcement. The company's forward-looking statement notes that no assurance can be given that further exploration will result in the estimation of a Mineral Resource.

Milestones to Watch

  • Satisfaction or waiver of the conditions precedent, including Astral's shareholder and regulatory approvals.
  • Execution of any required deed of assignment and assumption.
  • Completion of the transaction and issue of the 20,000,000 consideration shares.
  • Exploration progress at the Timor-Leste manganese, copper and gold prospects.
  • Sales outcome of the 27,000 tonne Ira Miri bulk sample.