MGX Resources sells Koolan Island iron ore operation
MGX Resources (ASX:MGX) has executed a binding conditional agreement to sell its Koolan Island iron ore operation to infrastructure and logistics group Crestlink Koolan.
The divestment aligns with MGX’s strategy to reposition itself as a premier Australian gold producer, shifting its near-term focus to developing the Central Tanami Gold Project in the Northern Territory.
The transaction's consideration comprises up-front and deferred payments totalling $20.2 million, alongside a future revenue-share component of up to an additional $5 million (CPI indexed).
Crestlink will assume remaining site rehabilitation obligations upon completion, which are anticipated to be in the region of $30 million.
Crestlink, backed by an affiliated investment fund of US investor Cerberus Capital Management LP, intends to operate the site as a combined mining, logistics, aviation, and marine support facility using existing infrastructure.
Structured as the sale of MGX’s wholly-owned subsidiary entities, the deal excludes certain plant and equipment, which MGX will retain for its gold project.
MGX expects to conclude its low-grade iron ore shipping programme at Koolan Island in July before ramping down operations.
Subject to FIRB and regulatory approvals, as well as the completion of defined rehabilitation tasks by MGX, the transaction is targeted to close in late 2026, with potential extensions reaching 31 March 2027.
MGX CEO Peter Kerr expressed gratitude to the Dambimangari Traditional Owners, noting the transaction ensures the infrastructure’s long-term utility for the wider Kimberley region.
