Estrella Resources (ASX: ESR) Signs 27,000-Tonne Manganese Sales Deal

Estrella Resources has signed a binding agreement to sell 27,000 tonnes of manganese ore from its Ira Miri project in Timor-Leste, giving the company a contracted buyer for the project’s bulk sample following receipt of export authorisation.

Private Australian company Repusource will buy the material at prevailing market rates. Additionally, the final price remains subject to quality adjustments based on independent sampling and analysis.

The transaction is intended to test customer acceptance, logistics and delivery costs rather than establish ongoing production. Repusource supplies multiple manganese-processing customers across the Asia-Pacific region, giving the Ira Miri material exposure to a broader customer base.

Importantly, signing the contract does not constitute shipment, recognised revenue or cash received. Estrella must still finalise vessel, loading and payment arrangements before the sale is completed.

Shipment targeted within 30 to 45 days

The agreement covers 27,000 metric tonnes, with the buyer able to vary the quantity by 5%. Shipment is targeted within 30 to 45 days of contract execution and execution of the letter of credit, subject to further agreement between the parties.

Delivery will be free on board at anchorage near the Tenu Port barge facility. Estrella is responsible for loading the cargo, while Repusource will arrange the vessel and onward shipping.

The full invoiced amount is payable within three business days after the buyer obtains the required commercial documents. Estrella may require payment to be supported by an irrevocable documentary letter of credit from a mutually agreed bank, while title to the material remains with the company until full payment is received.

Causeway construction is underway at Tenu Port, and manganese is being moved from the stockpile to the loading area. Independent surveyors will determine the shipment weight and complete the required sampling and analysis.

A market test

The ore was extracted under a January 2026 agreement with Timor-Leste’s Autoridade Nacional dos Minerais, which authorised the extraction of up to 30,000 tonnes for market appraisal.

The sale forms part of the Estrella Murak Rai joint venture, which Estrella manages and owns 70%. Timorese partner Murak Rai Timor holds the remaining 30%. The contracted 27,000 tonnes represents the joint venture’s entire parcel rather than Estrella’s attributable share.

For Estrella, the shipment will provide evidence on product acceptance and the practical cost of exporting Ira Miri manganese. Those results will inform its assessment of longer-term supply and potential offtake opportunities, but no continuing sales agreement has been secured.