Estrella Resources (ASX:ESR) has entered into a master agreement with PT Raka Energi Mandiri (REM) to work together in the marketing and selling of limestone from its Timor-Leste Mining concessions. REM is a leading mining and energy services company in Indonesia with a big network in the industry.
This agreement grants REM the exclusive marketing and offtake rights for the purchase and sale of limestone in Indonesia specifically. It also provides the framework for Estrella and REM to negotiate the terms of an offtake agreement wherein REM will gain the exclusive right to purchase limestone at an agreed annual sale price.
The sales targets for this partnership amount to up to 500M dry metric tonnes of limestone over five years from the first shipment. The details are as follows:
- Estrella Murak Rai Timor Lda (ESR 70%, MRT 30%) will earn the proceeds
- REM will be entitled to unlisted share options, exercisable at A$0.05 each for successfully facilitating limestone sales over this five-year period
- Estrella will grant REM one unlisted share option, exercisable at A$0.05, for each tonne of limestone sold (ordered and paid), representing a total of up to 500M unlisted share options, exercisable if REM achieves the sales target
The terms of the master agreement and the accompanying definitive offtake agreement are still subject to Estrella achieving certain project development milestones, such as a JORC-compliant resource and the completion of a scoping study by Q4 CY25.
Speaking on this agreement, Chris Daws, Managing Director of Estrella Resources noted, “This is a truly transformational moment for Estrella and a major step forward in building a long-term
commercial pathway from limestone production from our Timor Leste projects, alongside our existing manganese exploration.
Partnering with a well-connected local group like REM gives us a strong advantage in accessing the Southeast Asian market. We anticipate this market to be advantageous for a number of years, given the substantial rise of nickel mining in Indonesia and limestone’s ability to improve the environmental impact of refining, primarily as an acid neutralisation agent.
The structure of this deal ensures we’re aligned on performance — REM will share in the upside if they hit our sales targets, and we’ll unlock real value for shareholders along the way. This Agreement positions Estrella to become a leading supplier of high-quality limestone into a growing market, and we look forward to building a strong, long-term relationship with REM as we move toward first shipment and beyond.”
To read more, please visit https://investorhub.estrellaresources.com.au/
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