The company has had a challenging start to 2013, with an ongoing legal dispute following it into the new year.

On April 4 Zyl announced that the legal dispute with the vendors of the 154 million tonne Mbila project, stemming from an October 2012 funding transaction, had finally been settled by paying the vendors’ legal costs and transferring the vendors its interest in the project.

“The board thanks Ian for his tireless work in resolving the recent challenges Zyl has faced,” Zyl commercial director Phillipe Lalieu said in a statement on Thursday.

“Ian considers it appropriate to step down now that two new major shareholders are coming on board with their own vision of the business.”

Following the resolution of the dispute and the completion of a placement, rights issue and convertible notes, the Mbila vendors and Prestige Glory hold approximately 35% and 21%, respectively, of the issued share capital of Zyl.

Prestige Glory can increase its shareholding to approximately 34% should it take up all of the shares to be issued.

“The board acknowledges and thanks Ian for his valuable contribution as CEO and director since October 2011 and wishes him well in his future endeavors.”

Lalieu and Zyl South Africa chief operations officer Jan Britz will collectively take over the CEO’s duties until a new chief is appointed.

On April 4 the company also announced that non-executive chairman Glenn Whiddon had resigned from the board.

Zyl said it had proposed that a representative of Prestige Glory be appointed to the board as his replacement.

John Beck, a senior South African businessman, will become a consultant to Zyl.

Beck’s involvement with Zyl will facilitate the development process and provide access to otherwise unavailable opportunities.

The Mbila project, situated in South Africa’s KwaZulu region near Richards Bay terminal, comprises a 19,000 hectare mining right area and a 53,000ha prospecting area.