Pilbara Minerals Ltd. has decided to get an expert to intervene in its dispute with Mineral Resources Ltd. regarding the sale of lithium from its Pilgangoora mine in Western Australia to China’s General Lithium Corp.
The company said Sept. 30 that it has served Mineral Resources a dispute notice, which allows for the matter to be resolved by a final and binding expert determination within 28 days of the appointment of an expert.
The point of contention between the two ASX-listed companies is Mineral Resources’ entitlement under a first-right-of-refusal clause in a Pilgangoora agreement.
According to Pilbara Minerals, Mineral Resources continues to dispute the validity of the company’s proposed sale of 140,000 tonnes per annum of off-take to General Lithium.
Mineral Resources holds a first right of refusal over off-take from the Pilgangoora project, which Pilbara Minerals said only entitles the company to make an offer to purchase lithium on terms no less favorable than the General Lithium deal or opt for a royalty of 2.5%.
Pilbara Minerals sought legal advice and is confident an independent expert will find its sale notice valid.
Mineral Resources must exercise its first right of refusal within 45 days from the date it received the sale notice.