The parties have been involved in legal proceedings over access to the books, records and agreements relating to the JV.

In 2010, Alliance Resources initiated proceedings against Quasar and its affiliate Heathgate claiming ‘misleading and deceptive conduct’ and sought restitution of the 75% stake in the exploration licence for the project.

Alliance Resources said in a statement that it received evidence from Quasar on 24 June 2014.

"Having now had an opportunity to review the complete body of evidence filed in this case and having consulted with Senior Counsel following the receipt of the final pieces of that evidence, Alliance decided that the appropriate course was to settle the Federal Court litigation," it added.

The company said it will now be able to proceed with the sale of its interest in the Four Mile project without the impediment of the litigation.

Last week, Alliance Resources intersected further uranium during regional drilling at the Four Mile project.

The Four Mile East and Four Mile West uranium deposits are said to host mineral resource of 9.8 million tons at an average grade of 0.33% U3O8, containing 32,000 ton U3O8.