TORONTO (miningweekly.com) – TSX-V-listed explorer First Point Minerals and Decar nickel/iron-alloy project joint venture partner Cliffs Natural Resources announced that they had reached a settlement agreement, after First Point started arbitration in May.

First Point said in May that Cliffs, which holds 51% of the project, refused to provide it with any information about the Decar project. It accused Cliffs of snubbing its attempts to obtain certain key reports prepared by consultants and contractors, as required under the option agreement between the two companies in relation to the project, in which Cliffs had earned its controlling interest.

The terms of the settlement agreement maintained the Decar project option agreement in full force and effect, enabling Cliffs, as manager of the project, to continue progressing the project towards completion of a National Instrument 43-101-compliant preliminary economic assessment (PEA) by March 2013. Cliffs would increase its ownership of the project to 60% on delivery of the PEA.

"We are extremely pleased that Cliffs and First Point were able to come together on a settlement of these contractual matters, and that the full focus of the parties' efforts can once again be dedicated to the business of moving the project forward technically and commercially,” First Point CEO Jim Gilbert said.

Details of the settlement agreement remain confidential.

First Point is the original owner of the project, which it believes to be the first property of its type anywhere in the world to be explored for possible commercial production of nickel entirely from awaruite, a naturally occurring nickel/iron alloy, which is, in effect, naturally occurring stainless steel.