PERTH (miningweekly.com) – ASX-listed Alliance Resources has agreed to sell its 25% interest in the Four Mile uranium project, in South Australia, appointing Deloitte Corporate Finance to head the hunt for a buyer.

Alliance has been embroiled in a number of legal battles with its development partner Quasar Resources, including an application to the Supreme Court of South Australia to joint venture (JV) management meetings, to enter into native title agreements, the registration of the native title agreements, as well as access to the books, records and agreements pertaining to the JV.

In 2010, Alliance also filed a court case against Quasar, claiming “misleading and deceptive conduct” on behalf of Quasar and seeking restitution for the 75% interest in the exploration licence for the Four Mile project.

A court date had been set for June 30. However, Alliance said that the company had received evidence from Quasar on June 24, and having now had an opportunity to review the complete body of evidence and consultation with its senior council, it decided to settle the Federal Court litigation.

Resolving the Federal Court legislation meant that Alliance could progress the sale of its interest in Four Mile without the impediment of the litigation.

The company told shareholders that the decision to sell its interest in Australia’s newest uranium project followed announcements regarding the further discovery of mineralisation to the north-east of the project area, which further increased the project’s potential.

Alliance said it preferred to focus its efforts on company-operated sites, including ventures in Chile, rather than at Four Mile, which did not meet the criteria of being a company-operated site.

The Four Mile project was officially opened earlier this month, after commissioning started in March.

The project has a resource of about 9.8-million tonnes, grading 0.44% uranium oxide (U₃O₈) for 32 000 t, or 71-million pounds of U₃O₈ and was expected to produce about 2.12-million pounds of U₃O₈.