Agreement to Divest the Koolan Island Iron Ore Operation
| Stock | Mount Gibson Iron Ltd (MGX.ASX) |
|---|---|
| Release Time | 11 Jun 2026, 9:09 a.m. |
| Price Sensitive | Yes |
Mount Gibson Iron Ltd to Divest Koolan Island Iron Ore Operation
- Agreement to sell Koolan Island operation to Crestlink for $20.2 million upfront and up to $5 million future revenue share
- Transaction includes rehabilitation obligations assumed by Crestlink
- Completion targeted for late 2026, subject to regulatory approvals
Mount Gibson Iron Ltd (MGX) has reached a binding conditional agreement with Crestlink Koolan Pty Ltd to sell its interest in the Koolan Island operation. The transaction includes upfront and deferred payments totaling $20.2 million and a future revenue share component of up to $5 million, indexed to CPI. Crestlink will assume rehabilitation obligations estimated at $30 million. The transaction is subject to regulatory approvals and completion of specified rehabilitation activities by MGX. The sale is part of MGX's strategy to focus on its Central Tanami Gold Project in the Northern Territory.
Upfront and deferred payments totaling $20.2 million and a future revenue share of up to $5 million
The transaction marks the end of MGX's involvement at Koolan Island and allows the company to focus on its gold project in the Northern Territory.