ESR’s Next Chapter Begins — First Drill Hole in Motion, page-53

Worth breaking this down from REM’s perspective, now that the limestone deal terms are public.

1. REM receives options over shares in Estrella at 5c

From the announcement:

“REM will be issued shares in Estrella when limestone is brought to market under the agreement. REM will also receive options exercisable at $0.05 per share.”

With ESR trading around 3.5c, these options are out of the money, meaning REM only benefits if the limestone strategy results in a material re-rate of ESR’s value. It’s performance-based — not free equity.

2. REM has exclusive rights to market and sell the limestone

From the announcement:

“REM has been granted exclusive marketing and offtake rights for the limestone sourced from Estrella’s Timor-Leste mining concessions.”

This isn’t just offtake — the keyword is exclusive marketing, which commercially implies that REM can negotiate pricing directly with buyers after commercial terms are set between ESR & REM.

ESR mines and delivers. REM decides how it's packaged, who it goes to, and at what price — that’s a major point of leverage.

3. REM has a commercial pathway to build supporting infrastructure

Not stated directly, but implied via:

“REM’s experience in international commodity trade and logistics is a key driver behind this partnership.”

With predictable limestone volume flows under their control, REM could justify investment in export logistics, ports, or bagging facilities — giving them further margin upside and long-term positioning in regional supply chains. Think shipping terminals or handling fees down the track.

4. REM gains equity exposure to manganese upside through converted ESR shares

This is embedded structurally:

“REM will receive shares in Estrella as limestone is brought to market.”

So while REM benefits from selling limestone, it also benefits if the success of limestone operations de-risks and accelerates Estrella’s path to its manganese target. They win on both fronts — short-term cashflow and long-term resource development.

So, to summarise:

* REM only wins if ESR shares exceed 5c — aligned incentives.

* REM can control pricing per tonne — not just pass-through offtake.

* REM could capitalise further through infrastructure plays.

This isn’t a simple tolling deal — it’s strategic positioning across the value chain.

And that’s how I understand it!