Stellar Resources (ASX:SRZ) signed a binding agreement, under which Australian Hualong consented to Stellar applying for a mining license adjoining Stellar's Heemskirk tin project in Tasmania regarding a potential tailings storage facility site, according to a Thursday Australian bourse filing.

Stellar will pay AU$200,000 to Australian Hualong, within seven days of the latter providing a letter to Stellar consenting to the application for the mining lease over the area.

Stellar will pay another AU$200,000 within seven days of the confirmation by Mineral Resources Tasmania of the granting of the mining lease to Stellar and issue ten million of its shares within five days of completing this payment.

The proposed tailings storage facility area will be incorporated into the firm's prefeasibility study to bring the project into development.

The firm is targeting the production of 3,000 tonnes-per-annum to 3,500 tonnes-per-annum of payable tin over the first six to ten years of production at Heemskirk.