It allows the company to acquire up to a 70% interest in the Kangwane North project.

The project contains an exploration target of 50-70 tonnes and is approximately 30km north of Zyl’s Kangwane Central project, in the same Nkomati coalfield.

The transaction replaces a binding heads agreement with York that was announced on May 25, 2012, which would have seen Zyl acquire a 60% interest in York’s Marble project, a 70% interest in the Kangwane North project and an increased stake in its flagship Mbila project to 74%.

The announcement follows the company last week telling the market it would not continue payments to buy a major interest in the 154 million tonne Mbila project.

“The company has advised the vendors that it does not accept the position of the vendors and that it maintains its position that the Mbila agreement has lapsed and that consequently, it is not bound thereby,” the company said in a statement to the ASX.

It also said it had initiated dispute resolution procedures.

Zyl chief executive officer Ian Benning said the revised acquisition provided the company with a good foothold in the Kangwane coalfield.

“It will provide the company with potential synergies with Kangwane Central and Kangwane South in terms of management, coal washing plant and technical facilities and the blending of different product qualities, as well as offering the prospect of reducing capital expenditure and operating costs,” he said in a company statement.

“It will also provide the company with an access to an additional rail siding on the main rail line between Maputo and Gauteng, the economic hub of South Africa.”