Astral Resources Buys Out Nickel Rights at Mandilla With $3M in Shares to Clear Path
Key Takeaways
- Astral has signed a binding agreement to buy 100% of Estrella Resources' Nickel Rights, removing a third party from tenure potentially critical to the Mandilla Gold Project footprint.
- The price is 20,000,000 Astral shares at a deemed $0.15, totalling $3,000,000, with no cash outlay.
- 10,000,000 of the Consideration Shares are escrowed for 6 months from completion, while the other 10,000,000 are unrestricted.
- Completion is scheduled by 12 October 2026 but depends on shareholder, regulatory and third party approvals or waivers.
- The announcement gives no valuation, nickel resource estimate or development timeline, and total shares on issue are undisclosed, so dilution cannot be calculated.
Astral acquires third party nickel rights over Mandilla development footprint
Astral Resources NL (ASX: AAR), through its wholly-owned subsidiary Mandilla Nickel Pty Ltd (MNPL), has entered a binding Transaction Agreement with Estrella Resources Limited (ASX: ESR) to acquire 100% of Estrella’s Nickel Rights. The announcement, dated 6 October 2026, describes the move as removing third party rights over tenure that is potentially critical to the broader Mandilla Gold Project development footprint.
The Nickel Rights are currently held by WA Nickel Pty Ltd, a wholly owned subsidiary of Estrella. Completion remains subject to conditions.
Marc Ducler, Managing Director, Astral Resources
“Astral continues to take the necessary steps to eliminate third party obstacles to the development of the Mandilla Gold Project. The Transaction with Estrella is further testament to the ongoing commitment of the Astral team to improve Astral’s permitting, approvals pathways and ultimately, project financing.”
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Transaction terms at a glance
Astral is paying in shares, not cash. The table below sets out the material terms from the Transaction Agreement.
| Term | Detail |
|---|---|
| Buyer | Astral (or its subsidiaries) |
| Seller | Estrella, via WA Nickel Pty Ltd |
| Consideration | **20,000,000** fully paid ordinary Astral Shares (Consideration Shares) at a deemed issue price of **$0.15** per share, totalling **$3,000,000** |
| Escrow | **10,000,000** Consideration Shares voluntarily escrowed for **6 months** from completion |
| Scheduled completion | By or on Monday, **12 October 2026** |
The Nickel Rights cover the following tenements:
- West Kambalda Tenements: M15/395, M15/703, L15/255 and L15/128
- Spargos Tenements: M15/1828
The $0.15 is a “deemed” issue price, an agreed value for the share issue rather than a market or placement price. Because half the Consideration Shares are escrowed (held back from sale), Estrella cannot sell those 10,000,000 shares for 6 months after completion.
Why removing third party rights matters
Mineral rights can be split. One party may hold the gold rights over a piece of land while another holds the nickel rights over the same ground.
That overlap can complicate permitting, approvals and project financing, because more than one party has an interest in the tenure. Mr Ducler’s comments point to exactly these areas, saying the Transaction reflects a commitment to improve Astral’s permitting, approvals pathways and ultimately, project financing.
The announcement does not quantify any of those benefits or give timelines. What it does say is that Astral “continues to take the necessary steps” to remove third party obstacles to Mandilla’s development.
Conditions still to be satisfied
Completion is conditional on a number of conditions precedent, including (but not limited to):
- Astral obtaining all necessary shareholder and regulatory approvals or waivers pursuant to the Listing Rules, Corporations Act or any other applicable law to allow it to issue the Consideration Shares.
- The parties and/or any relevant third party entering into any agreement required to complete the Transaction, including but not limited to any deed of assignment and assumption.
- The parties obtaining all necessary shareholder, regulatory or third party approvals or waivers to allow them to lawfully complete the Transaction.
The Transaction therefore remains subject to the satisfaction or waiver of these conditions. Astral says the agreement otherwise contains terms and conditions considered standard for agreements of this nature.
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What investors should watch next
Completion is scheduled to occur by or on 12 October 2026. Watch for confirmation that the conditions have been met, including any shareholder approval outcomes.
The deal involves issuing 20,000,000 new Astral shares, which means possible dilution for existing holders. The announcement does not disclose total shares on issue, so the percentage impact cannot be calculated from the source.
The announcement also does not disclose a valuation of the Nickel Rights, any nickel resource estimates, or timelines for Mandilla development, financing or permitting.
It includes a location map of the Mandilla, Spargoville and Feysville Gold Projects, which shows Astral’s projects in the Kalgoorlie region of Western Australia.
Ready To Learn More About The Mandilla Gold Project?
Astral Resources has moved to acquire Estrella’s Nickel Rights for $3,000,000 in shares, removing third party rights over tenure potentially critical to the Mandilla development footprint. The deal supports the company’s push to streamline permitting, approvals pathways and project financing.
Explore the Astral Resources company profile to discover more about its Kalgoorlie region projects and investment potential. Stay informed on how this transaction could shape the next stage of Mandilla’s development.