Estrella turns Ira Miri manganese sample into a contracted sale

Binding Buyer Secured for Ira Miri Bulk Sample

Estrella Resources Limited (ASX:ESR) has found a buyer for the 27,000-tonne Ira Miri manganese bulk sample, converting a government-approved export parcel into a contracted commercial test. The binding sales agreement with Australian manganese supplier Repusource gives the material a route into multiple processing customers across Asia Pacific markets.

The agreement follows the Ira Miri export approval, which authorised the market appraisal parcel for export through Tenu Port. Estrella said the sale advances the sample towards shipment and customer evaluation, while allowing the joint venture to test customer acceptance and the practical costs of delivering the ore to market.

Confidential Pricing Leaves Realised Value Unclear

The price has been agreed at prevailing market rates, but the parties have not disclosed the pricing formula or expected proceeds. The final price will remain subject to quality adjustments, with independent surveyors responsible for determining shipment weight, sampling and analysis.

That makes the first shipment commercially useful beyond the immediate sale: it should provide information on product quality, logistics and customer response. It is not yet a confirmed revenue event. Estrella explicitly said contract execution does not itself represent shipment, recognised revenue or cash received.

Shipment Depends on Loading and Payment Arrangements

The sale is structured on a free-on-board basis at anchorage near the Tenu Port barge facility. Estrella is responsible for loading the cargo, while Repusource arranges the vessel and onward shipping. Shipment is targeted within 30 to 45 days after contract execution and execution of a letter of credit, although the timing remains subject to further agreement between the parties.

Payment is due in full within three business days after the buyer obtains the required commercial documents. Estrella may require an irrevocable documentary letter of credit from an agreed first-class bank, while title remains with Estrella until payment has been received. Causeway construction and stockpile transfers at Tenu Port are already underway, but vessel nomination, loading and independent testing still stand between the contract and cash receipt.

Whole Joint Venture Parcel Covered by Sale

The 27,000 tonnes represents the entire Estrella Murak Rai joint venture parcel, rather than Estrella’s attributable share. Estrella manages the joint venture and holds a 70% interest through its Timor-Leste subsidiary, with Murak Rai Timor holding the remaining 30%. The company has entered the contract in its own name while a dedicated joint venture bank account is established.

The deal is limited to the bulk sample and contains no commitment from Repusource to make ongoing purchases. Nor does it approve continuing commercial mining. Any full-scale development of Ira Miri remains dependent on further project assessment and the required licensing work, leaving the shipment itself as the next meaningful test of the project’s commercial proposition.