Allens has advised Crestlink on its proposed acquisition of the Koolan Island iron ore mine and associated infrastructure from MGX Resources Limited, supporting the transition of the assets into a multi-use infrastructure and logistics hub in northern Australia, including for offshore energy, government and defence activities.
The transaction is structured as the acquisition of 100% of the shares in MGX’s wholly owned subsidiary, Aztec Resources Limited, which, through its subsidiaries, holds the Koolan Island assets and tenure.
Allens worked closely with Crestlink management and its broader advisory team, including Voyager Legal, on the structuring and negotiation of this transformational transaction, which will see the repurposing of existing infrastructure to create new value and opportunities for growth in the resources and defence sectors operating in the region.
The Crestlink team has a focus on long-term economic and community outcomes in the Kimberley region, in partnership with the Dambimangari Traditional Owners. The acquisition also reflects the continued demand for private capital investment in hybrid mining and infrastructure opportunities in Western Australia with an affiliated investment fund of Cerberus Capital Management, L.P. supporting Crestlink.
‘This transaction demonstrates how late-life resource assets can be repositioned and repurposed to support new industries and long-term regional development. It also reflects the increasingly sophisticated structuring required to balance risk, rehabilitation and future value in the resources sector. The transaction is a testament to the vision of the Crestlink management team and the investors supporting Crestlink,’ said Partner Andrew Pascoe.
‘The value of this deal is reflected not so much in the purchase price for the assets, but rather in the future value the transaction has the capacity to unlock.’
This transaction highlights Allens’ experience advising on complex matters involving operational wind-down, rehabilitation obligations, bespoke risk allocation, multi-tranche purchase price structures and asset repurposing, which are becoming increasingly prevalent across the sector.
