Highlights

  • MGX Resources has signed a binding agreement to divest its Koolan Island iron ore operation for up to $25.2 million plus a revenue share.
  • Buyer Crestlink Koolan Pty Ltd will assume ~A$30 million in rehabilitation obligations linked to the site closure.
  • Proceeds will allow MGX to pivot toward its Central Tanami Gold Project and long-term gold production strategy.

Overview

MGX Resources Limited (ASX:MGX) has entered into a binding conditional agreement to sell its Koolan Island iron ore operation to infrastructure group Crestlink Koolan Pty Ltd in a transaction valued at up to $25.2 million plus a potential $5 million revenue share. The deal also transfers approximately $30 million in rehabilitation obligations to the buyer, significantly reducing MGX’s long-term environmental liabilities. Following completion, expected in late 2026 subject to regulatory approvals, MGX will complete its final iron ore shipping program before exiting the asset. The divestment marks a strategic shift for MGX as it repositions toward precious and base metals, with a primary focus on advancing its 50%-owned Central Tanami Gold Project in the Northern Territory.

Why Is MGX Divesting Koolan Island Now?

The divestment reflects MGX’s strategic transition away from iron ore toward higher-value gold and base metals development. Koolan Island has been a long-standing operation, but the company is now focusing on its next growth phase, particularly the Central Tanami Gold Project. The sale allows MGX to unlock value from a mature asset while reducing exposure to closure and rehabilitation liabilities. By exiting iron ore operations, MGX can streamline its portfolio and concentrate capital and management attention on advancing exploration and development opportunities. The timing aligns with the completion of its remaining shipping program and provides a structured transition toward a new production profile.

What Does the Crestlink Deal Mean for Koolan Island’s Future?

Under the agreement, Crestlink will take control of Koolan Island and reposition it as a multi-use infrastructure and logistics hub. Backed by investors affiliated with Cerberus Capital Management, Crestlink plans to utilise existing port, aerodrome, and accommodation infrastructure to support mining, logistics, aviation, and potentially defence-related activities. The company may also explore future mining opportunities on the island. Importantly, Crestlink will assume rehabilitation responsibilities estimated at around $30 million, reducing MGX’s long-term environmental obligations. The structure of the deal ensures continued economic use of the site while supporting regional development and maintaining engagement with Traditional Owners and local stakeholders.