The $12 million settlement release deal with Tinkler and his associated companies will mean Tinkler will not have to pay $28.4 million to Blackwood as proposed by his original placement agreement. However, it also will mean he receives no shares in the company.

Instead the parties have agreed that one or more of Tinkler's associated companies pay Blackwood $12 million on or before June 30 in full and final settlement of the SPA and the legal proceedings.

The liquidators acting on behalf of the creditors of Mulsanne Resources will adjourn legal proceedings until July 1 to aid the proposed settlement.

Those legal proceedings relate to a freezing order application against the directors of Mulsanne Resources for insolvent trading and against directors and the former company secretary for breach of their duties as directors and officers of Mulsanne Resources in regard to the SPA.

“To facilitate the payment obligation, certain of Mr Tinkler's associated companies and Family Trust have each provided an irrevocable undertaking that should certain assets be sold prior to June 30 2013, and any one or more of those assets nets an amount of $12 million, then they will provide a direction for the purchaser to pay the consideration to Blackwood up to the amount of the Payment Obligation, after any applicable first encumbrance has been satisfied,” Blackwood said in a statement.

If the payment obligation is satisfied by June 30 then the SPA will be terminated with no shares issued and the parties being released from all obligations under the SPA. Legal proceedings against Tinkler also will be dismissed.

“If the payment obligation is not satisfied by June 30 2013 then the legal proceedings will continue in accordance with the legal process,” Blackwood said in a statement.

“Blackwood will continue to monitor the recoverability of the monies owed to the company under the SPA.”