Pilbara Minerals Reaches Agreement With Mineral Resources

Australian lithium developer, Pilbara Minerals Limited (ASX:PLS) is pleased to advise that it has reached agreement with Mineral Resources Limited (ASX: MIN) (“MIN” or “Mineral Resources”) to resolve the dispute over the sale notice and ROFR in a landmark settlement which will see the ROFR and 2.5% royalty permanently relinquished in exchange for Mineral Resources taking a stake in Pilbara and committing to support the development of the Pilgangoora Lithium-Tantalum Project.
HIGHLIGHTS:

• Parties have resolved their dispute over the sale notice and right of first refusal (ROFR).
• Pilbara to issue $A50 million in PLS shares to Mineral Resources in return for the ROFR and the royalty being permanently and irrevocably
• Mineral Resources has committed to provide its support to Pilbara Minerals during the development and operation of the Pilgangoora Lithium-Tantalum
• The agreement allows Pilbara Minerals to move forward with development of the Pilgangoora Project with long-term certainty, with Pilbara free to negotiate without restriction all future off-take and lithium sales and progress its project
• Royalty extinguishment will have a very positive impact on the Pilgangoora Project’s Net Present Value.

The agreement will provide certainty and allow Pilbara to proceed with the financing and development of the Pilgangoora Lithium-Tantalum Project without the requirement to offer Mineral Resources the ROFR in respect of any future sales of lithium.
Pilbara Minerals Managing Director & CEO, Ken Brinsden said he was very pleased that parties had been able to work together to resolve the dispute in a commercial manner.
“Importantly, this means that the royalty, which formed part of the original terms for the acquisition of the underlying Pilgangoora tenements has now been paid in full with no following obligations,” he said. “In addition, the right of first refusal over existing and future off-take and product sales agreements for lithium has now been extinguished forever.
“This means that we can move ahead at full speed to complete our remaining off-take agreements, complete project permitting and financing and commence development of Pilgangoora as a world-class lithium project that will deliver significant benefits to all of our stakeholders.
“As part of this settlement, we look forward to welcoming Mineral Resources as a shareholder in Pilbara and to working with them to progress the development of Pilgangoora and to explore other opportunities to continue to develop the Pilbara region as a world-class mining and processing centre for lithium for many decades to come.”
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