Pearl Gull to Receive $4.5M Cash and 4% Crestlink Equity in Major Asset Sale
Pearl Gull Iron Limited has entered a binding agreement to sell its Cockatoo Island Project for A$4.5 million in cash, a 4% equity interest in Crestlink Pty Ltd, and royalties on extracted materials, with completion expected in Q4 2025.
- Binding agreement to sell Cockatoo Island Project for A$4.5 million cash
- 4% equity interest in Crestlink Pty Ltd included in consideration
- Royalties payable on iron ore and ballast extracted from the project
- Transaction subject to shareholder, ministerial, and FIRB approvals
- Company to focus on new projects and growth opportunities post-sale
Pearl Gull Iron’s Strategic Shift
Pearl Gull Iron Limited (ASX, PLG) has announced a significant strategic move, entering into a binding Asset Sale and Purchase Agreement to divest its Cockatoo Island Project. The deal, valued at A$4.5 million in cash, also includes a 4% equity stake in Crestlink Pty Ltd and ongoing royalties tied to materials extracted from the project. This transaction marks a pivotal moment for Pearl Gull, signaling a transition from its longstanding focus on Cockatoo Island towards new growth avenues.
Details of the Proposed Transaction
The sale encompasses 100% of Pearl Gull’s interest in the mining tenements, plant, infrastructure, and related contracts associated with Cockatoo Island. The cash consideration is structured in four instalments, with A$600,000 already received and held in escrow pending completion conditions. The remaining payments include A$1.9 million at completion and A$2 million twelve months thereafter.
In addition to cash, Pearl Gull will receive a 4% direct or indirect equity interest in Crestlink Pty Ltd, subject to Crestlink shareholder approval. Should this approval not be granted, an equivalent stake will be issued via JCA WA Nominees Pty Ltd, Crestlink’s majority owner. The agreement also includes royalties, 2% of the free on-board value of iron ore sold and A$0.50 per tonne of ballast used in construction on Cockatoo Island.
Conditions and Approvals Required
The transaction remains conditional on several approvals, including Pearl Gull shareholder consent at the upcoming Annual General Meeting on 5 November 2025, ministerial consent under the Mining Act, third-party consents, and clearance from the Foreign Investment Review Board (FIRB). The parties have until 3 March 2026 to satisfy these conditions, with potential extensions for ministerial consent. Failure to meet these conditions could result in termination of the agreement.
Operational and Financial Context
During the September 2025 quarter, Pearl Gull maintained limited exploration activities on Cockatoo Island, focusing on care and maintenance, environmental compliance, and site inspections. The company incurred exploration expenditure of $47,000 and corporate costs of $147,000, with director fees on hold pending transaction completion.
Financially, Pearl Gull drew down $200,000 from a $500,000 unsecured loan facility to support operations. The company holds $47,000 in cash at quarter-end, supplemented by $300,000 in undrawn loan capacity. The proceeds from the sale are earmarked for identifying new projects, pursuing growth opportunities, and supporting working capital needs.
Looking Ahead
Post-sale, Pearl Gull intends to continue as a listed entity, pivoting towards new iron ore exploration and development projects beyond Cockatoo Island. The company’s management emphasizes a commitment to generating shareholder value through strategic acquisitions and operational efficiencies.
Bottom Line?
Pearl Gull’s divestment of Cockatoo Island sets the stage for a new chapter focused on growth and diversification.
Questions in the middle?
- Will shareholder approval be secured at the November AGM to finalize the sale?
- How will Pearl Gull deploy proceeds to identify and develop new projects?
- What impact will the equity stake in Crestlink have on Pearl Gull’s future earnings?
