Kidman settles tenement dispute

Kidman Resources has reached a settlement with parties in relation to a minimum expenditure obligation for a series of tenements at its Mt Holland project near Southern Cross.

The company had been at risk of forfeiting 13 tenements within Mt Holland due to applications from two parties, Phoenix Rise and Jeffrey Hull.

Kidman managing director Martin Donohue said the settlement resolved the matter.

“With the settlement concluded, funding secured through to final investment decision and our recent lithium hydroxide offtake agreements with Tesla, Inc. and Mitsui & Co. Ltd, we will be able to wholly focus on progressing the development of the Mt Holland lithium project, secure further strategic offtake agreements with key global partners and continue our discussions in relation to the provision of debt facilities with prospective lenders,” he said.

The terms of the settlement are confidential.

The settlement will trigger joint venture partner Sociedad Quimica y Minera de Chile’s $US25 million milestone payment to Kidman and $US60 million to the Covalent Lithium JV.

The two companies have a 50 per cent stake in the planned Kwinana lithium refinery and Mt Holland project.

Kidman said the companies were continuing to progress discussions relating to the $US100 million capital expenditure facility.

Shares in Kidman finished ahead 7.1 per cent at $1.44 each today.