Pearl Gull Iron Secures $4.5M and Equity in Cockatoo Island Project Sale
Pearl Gull Iron has completed the sale of its Cockatoo Island Project, receiving $4.5 million in cash, a 4% indirect stake in Crestlink Pty Ltd, and ongoing royalties. The transaction positions the company to pursue new growth opportunities while maintaining exposure to the project’s future upside.
- Sale of 100% interest in Cockatoo Island Project for $4.5 million cash
- Pearl Gull retains 4% indirect equity interest in Crestlink Pty Ltd
- Royalties secured on iron ore and ballast extracted from project tenements
- Upfront payment of $2.5 million received, with $2 million due in December 2026
- Funds earmarked for new projects and working capital
Pearl Gull Iron Completes Strategic Divestment
Pearl Gull Iron Limited (ASX – PLG) has officially closed the sale of its Cockatoo Island Project, a move that brings immediate liquidity and a retained stake in the project’s future. The deal, valued at A$4.5 million in cash, also includes a 4% indirect equity interest in Crestlink Pty Ltd and royalties on materials extracted from the Cockatoo Island tenements.
The company has already received an upfront payment of A$2.5 million, with a further A$2 million scheduled for payment by December 19, 2026. This staggered payment structure provides Pearl Gull with both immediate capital and a deferred cash inflow, supporting its ongoing operations and strategic ambitions.
Maintaining Exposure Through Equity and Royalties
While Pearl Gull has exited direct ownership of the Cockatoo Island Project, it retains a 4% indirect interest in Crestlink via a 4.55% stake in JCA WA Nominees Pty Ltd, Crestlink’s largest shareholder. This equity position ensures Pearl Gull remains connected to the project’s development trajectory and potential upside.
Additionally, the company will receive royalties comprising 2% of the free on-board value of all iron ore extracted and sold by Buccaneer Resources Pty Ltd, alongside a fixed royalty of A$0.50 per tonne of ballast used in Crestlink’s multi-user supply base construction on Cockatoo Island. These royalties provide a recurring revenue stream tied directly to project output.
Crestlink’s Development and Strategic Importance
Crestlink, formerly Kimberley Technology Solutions, is advancing a significant multi-user aviation and marine logistics network across the Kimberley region. The Cockatoo Island development has secured formal environmental approval from the Western Australian Environmental Protection Authority, a critical milestone enabling construction to commence in the second quarter of 2026.
Backed by strategic investment from Cerberus Capital Management, Crestlink’s $300 million development program aims to bolster regional infrastructure supporting defence, resources, and maritime sectors. The project is also notable for its partnership with the Dambimangari Aboriginal Corporation, reflecting a commitment to Indigenous engagement and regional economic participation.
Pearl Gull’s Future Focus
With the Cockatoo Island Project sale complete, Pearl Gull signals a clear pivot towards identifying new projects and growth opportunities. The capital raised will fund exploration and development initiatives, while the company maintains working capital to support its listed status and operational needs.
This strategic divestment allows Pearl Gull to reduce direct project risk while preserving upside potential through its equity and royalty interests, positioning the company for a refreshed growth phase in the evolving Western Australian mining and logistics landscape.
Bottom Line?
Pearl Gull’s divestment unlocks capital and retains upside, setting the stage for a new growth chapter.
Questions in the middle?
- How will Crestlink’s operational progress impact the value of Pearl Gull’s equity and royalties?
- What new projects or sectors will Pearl Gull target with its refreshed capital base?
- Could further equity dilution in Crestlink affect Pearl Gull’s retained interest?
