Collins claimed he was entitled to equity participation of Aston under the terms of his employment contract with the company.

He became the managing director of another Tinkler Group-affiliated company, MM Mining, in February 2010 – prior to Aston Resources’ initial public offering in August that year.

Collins took his $157 million claim against Aston to the NSW Supreme Court at the time of the merger with Whitehaven last year.

This represented 5% of the midpoint of “valuations of Aston’s Maules Creek project and Dingo tenements” it acquired, according to Collins’ solicitors.

Aston Resources intended to vigorously defend these proceedings when they were lodged.

While the terms of the settlement are confidential, the settlement involves the withdrawal of all claims against the Whitehaven Group by Collins in return for payment to him of an immaterial sum of money, Whitehaven Coal managing director Paul Flynn said.

“We are very pleased to have resolved this matter,” he said.