Gilbert + Tobin has advised MGX Resources Limited (MGX) on its proposed sale of the Koolan Island iron ore mine and associated assets to Crestlink Koolan Pty Ltd (Crestlink).
The transaction is structured as the sale of 100% of the shares in MGX’s wholly owned subsidiary, Aztec Resources Limited, which, through its subsidiaries, holds the Koolan Island mining assets and associated tenure.
Under the binding conditional agreement, Crestlink has agreed to acquire MGX’s interest in the Koolan Island operation for upfront and deferred payments of $20.2 million, together with a future revenue share component of up to a further $5 million, subject to CPI indexation.
Koolan Island is approaching the natural end of its current iron ore shipping operations, which are presently scheduled to be completed in July 2026. Following completion of the transaction, Crestlink will seek to use Koolan Island’s infrastructure assets to develop a logistics base for offshore energy, government and defence-related stakeholders, while continuing to assess future mining opportunities on the island.
Crestlink is an Australian infrastructure and logistics provider with a longstanding focus on the Kimberley region and northern Australia, and is backed by US infrastructure investor Cerberus Capital Management. Crestlink is working to establish a major logistics hub in the Kimberley region and, in partnership with the Koolan Island Traditional Owners, represented by Dambimangari Aboriginal Corporation, also holds tenure and infrastructure interests on neighbouring Cockatoo Island.
As part of the transaction, Crestlink will assume responsibility on completion for the remaining mine rehabilitation obligations at Koolan Island. MGX is already undertaking substantial earthworks to remediate disturbed areas, with the remaining obligations at completion currently anticipated to be in the region of $30 million, primarily relating to the site’s key infrastructure assets.
The Gilbert + Tobin team was led by partner Claire Boyd, with support from Callum Fleming and Shay Kiriakidis.
We are pleased to have supported MGX Resources on this important transaction, which reflects the next phase for Koolan Island and its infrastructure assets. The transaction brings together resources, infrastructure, logistics and rehabilitation considerations, and is a strong example of the complex, multidisciplinary work our team continues to deliver for clients in the mining and energy sectors.
