Pearl Gull Iron Limited has completed the sale of its Cockatoo Island Project, receiving $2.5 million upfront and securing a 4% indirect equity stake in Crestlink Pty Ltd, alongside future royalties. The company is now focused on leveraging these proceeds to explore new opportunities.
- Sale of Cockatoo Island Project for A$4.5 million plus equity and royalties
- Received A$2.5 million upfront; remaining A$2 million due in December 2026
- 4% indirect equity interest in Crestlink via JCA WA Nominees Pty Ltd
- Full repayment of outstanding loans and accrued director fees during the quarter
- Strategic focus shifted to identifying new projects and growth opportunities
Pearl Gull Iron Completes Strategic Asset Sale
In a significant move during the December 2025 quarter, Pearl Gull Iron Limited (ASX, PLG) finalised the sale of its Cockatoo Island Project. The transaction brought in a total consideration of A$4.5 million, comprising an upfront cash payment of A$2.5 million, a 4% indirect equity interest in Crestlink Pty Ltd, and royalties on materials extracted from the project’s tenements.
The sale marks a pivotal moment for Pearl Gull, as it divests from its direct operational interests in Cockatoo Island while maintaining exposure through equity and royalty streams. The remaining A$2 million cash payment is scheduled for December 2026, providing a deferred financial benefit alongside ongoing royalty income.
Equity Stake in Crestlink and Future Growth
Pearl Gull’s 4% indirect stake in Crestlink is held via a 4.55% interest in JCA WA Nominees Pty Ltd, Crestlink’s largest shareholder. Crestlink is advancing a major $300 million development program on Cockatoo Island, recently achieving key environmental approvals and securing full funding, positioning it to commence construction in the second quarter of 2026.
This equity position allows Pearl Gull to benefit from Crestlink’s progress and potential future equity raisings, with mechanisms in place to maintain its 4% interest subject to valuation thresholds. The royalties, calculated as a percentage of extracted ballast and iron ore sales, offer additional upside linked to operational output.
Financial Position Strengthened
Proceeds from the sale have been used prudently, including the full repayment of an unsecured loan facility with Malekula Projects Pty Ltd and the settlement of accrued director fees. The company reported operating cash outflows of A$285,000 for the quarter, with a healthy cash balance of A$2.05 million at period end, supporting approximately seven quarters of funding at current expenditure levels.
Exploration expenditure during the quarter was modest, focused on care and maintenance activities and drone surveys on Cockatoo Island prior to divestment completion. Corporate costs included one-off transaction-related expenses, which are not expected to recur.
Looking Ahead, New Projects and Opportunities
With the Cockatoo Island Project sale behind it, Pearl Gull is now turning its attention to identifying new projects and growth avenues. The company remains listed and well-capitalised, with a strategic interest in the Kimberley region’s infrastructure development through its Crestlink equity.
Its future trajectory will likely depend on how effectively it can leverage the capital and industry relationships gained from this transaction to build a diversified portfolio. The partnership frameworks with Indigenous groups and alignment with regional logistics initiatives position Pearl Gull to participate in northern Australia’s evolving resource and infrastructure landscape.
Bottom Line?
Pearl Gull’s divestment reshapes its portfolio, setting the stage for fresh ventures while retaining a foothold in Cockatoo Island’s future.
Questions in the middle?
- How will Crestlink’s development progress impact Pearl Gull’s equity value and royalty income?
- What new projects or sectors is Pearl Gull targeting with its refreshed capital base?
- Could future equity raisings at Crestlink dilute Pearl Gull’s indirect stake, and how will this be managed?