The company filed proceedings in the Supreme Court of South Australia seeking a declaration that the termination is valid.

The company said that 510,000lbs of uranium ore concentrate has been shipped to a converter in Ontario and value of its share is estimated to be A$6m.

"Alliance directed Quasar to sell its share of product at the best price available. Quasar has refused to comply with that direction," it added.

Terminating Quasar is part of Alliance’s efforts to protect the financial position of the company.

Alliance Resources plans to use the proceeds from sale of Four Mile product, to fund future costs associated with the project.

Earlier this week, has approved the 2015 program and budget for the project, to produce 2.64 million pounds of uranium concentrates and a cash expenditure of $107.75m.