The two companies announced a deal last week after a three-month legal battle over offtake for Pilbara’s Pilgangoora, and have now signed the formal agreements.

Pilbara will issue MinRes 104.1 million shares at A48c, worth $50 million, to relinquish the right of first refusal over Pilgangoora’s lithium sales and the associated 2.5% net smelter royalty.

The deal will give MinRes around an 8% stake in Pilbara, and it will not be able to sell the share for six months or increase its stake for a year.

As a result of the agreement, all court proceedings have been discontinued.

The matter had weighed on Pilbara’s share price and Pilbara managing director Ken Brinsden said last week that the agreement removed a significant impost.

“When it’s all said and done, I think it’s a great point of clarity for our shareholders,” he said.

“[The ROFR] wasn’t a show-stopper but it provided another level of complexity.”

MinRes has agreed to support the Pilgangoora development and will be invited to submit to the tender process for mining and infrastructure services.

As part of the agreement, Pilbara and MinRes have also agreed to collaborate on potential synergies that may exist between MinRes’ Wodgina assets and Pilgangoora.

The agreement will improve the economics of Pilgangoora, with the pre-tax net present value to rise by around $60 million.

Pilgangoora already has a post-tax NPV of $709 million, based on a 2Mtpa operation over a 36-year mine life to produce an average of 314,000 tonnes of 6% spodumene and 321,000 pounds per annum of tantalite.

Financing and tantalum offtake talks are well-advanced and early works at Pilgangoora are already underway.

Pilbara had $94.2 million cash at the end of September, which is funding early orders and work at the project ahead of financing and the start of construction early next year.

Shares in Pilbara rose by 3.1% to 55.7c, while MinRes shares added nearly 1.1% to $11.685.