Kidman Resources Ltd. said Jan. 30 that the Supreme Court of Western Australia granted the company's request to separate any determination of damages in proceedings commenced in November 2016 by Marindi Metals Ltd.

Marindi claims that it has a binding agreement with Kidman related to the lithium rights at Kidman's Mount Holland gold property, while Kidman denies that a binding agreement was reached.

In January, Kidman and Marindi were ordered by the Supreme Court to attend mediation.

As a result of the latest decision, a trial slated for May 29 will deal exclusively with the issue of whether or not an agreement was in place. The matter of damages alleged by Marindi will be deferred until after the court determines if an agreement existed.

If the Supreme Court agrees with Kidman that an agreement did not exist, Marindi will not be entitled to any damages.

Kidman released an initial lithium resource for the Earl Grey project at Mount Holland in December 2016.