MZI Resources has settled a legal fight with Stirling Resources over a suite of mineral sands tenements on the Tiwi Islands and in the Northern Territory.
Under terms of the settlement, MZI will pay Stirling $1 million on a deferred basis and issue it more than 78 million shares.
Stirling will also receive a 0.5 per cent gross royalty from MZI’s flagship Keysbrook project, south of Perth.
In return, Stirling will transfer ownership of the Tiwi tenements to MZI and MZI will assume all liabilities in respect to the projects.
An agency agreement between MZI and its major shareholder, Canada’s DCM DECOmetal, will be terminated, with MZI owing nothing to DCM.
Stirling has also agreed to request a meeting of MZI shareholders to initiate a board spill for 12 months.
Stirling also agreed to vote in favour of any resolution presented by MZI’s directors over the next 24 months if MZI secures a project finance facility worth at least $40 million.
MZI chief Trevor Matthews said the resolution of the legal action provided certainty over the ownership of the assets.
“It also allows us to be fully focused on completing the funding and construction of Keysbrook, which is set to generate strong shareholder returns.
At close of trade today, MZI shares were down 9.5 per cent, while Stirling stocks were unchanged at 1.1 cents.
