Pilbara and MinRes shake hands
PERTH (miningweekly.com) – Juniors Pilbara Minerals and Mineral Resources (MinRes) have entered into a formal settlement deed to settle a dispute over product from the Pilgangoora lithium project, in Western Australia.
The two companies earlier this week agreed to terms to settle a dispute over a sales notice and the right of first refusal over the Pilgangoora product, bringing to an end legal disputes.
Under the terms of the agreement struck between MinRes and Pilbara Minerals, MinRes will permanently relinquish its right of first refusal and a 2.5% royalty payment in exchange for a stake in Pilbara Minerals, and committing to support the development of the Pilgangoora project.
MinRes will be issued with A$50-million of Pilbara Minerals shares, based on a 48c a share valuation. The shares will be issued under Pilbara Minerals' placement capacity and will not require shareholder approval.
Pilbara Minerals said on Wednesday that the company would issue some 104.1-million shares to MinRes under its current 15% placement capacity.
In addition, the two parties have also agreed to collaborate to explore and exploit possible synergies that could exist between MinRes’ Wodgina project and the Pilgangaoora project, to mutual benefit.
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