Ann: Pilbara Minerals Reaches Agreement with Mineral Resources,MIN-PLS.AX, page-196

Can someone explain to me how PLS is better off??
Effectively, they have diluted existing shareholders by 9% (i.e. $50m new capital/ $560m current mkt cap) to buy out a 2.5% royalty on future income and a ROFR.
The royalty fee won't have as big an impact on the project NPV because (for anyone that understands the time value of money and discounted cashflows) royalty payments are only made when future revenue is received, as opposed to an upfront payment of $50m.
The only reason I see this as good news is it reduces a huge risk for the project financier by removing the ROFR i.e. makes the income stream cleaner to collateralise.
In my view, it's a big price to pay and now MIN and PLS are stuck with each other as bedfellows. The value of the "commitment" to work together is not worth the paper it's written on. Clearly, both organisations have shown a willingness to try to weasel out of previous contractual obligations - so why should this time around be any different??
Whilst I accept there will be a short term relief rally, I think as the dust settles and the parties have to work together, we will see further strains in the relationship.
Interestingly, MIN's obligation to not sell the newly allocated shares ceases prior to the commencement of operations at Pilgangoora. That to me is a big risk factor right there. I wonder what the financiers will think of that................... watch this space!!!