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Under the terms of a revised settlement with Mbila’s vendors, Zyl has agreed to pay $A350,000 by July 3 and another $A150,000 on September 25.
On payment of the second amount on September 25, the parties have agreed to release each other from any further claims.
The $A5.6m capital raising had been to fund Zyl’s purchase of Mbila.
Prestige Glory has agreed to provide Zyl with a $1m convertible note that will be drawn down in two tranches.
The first tranche of $750,000 will be drawn down immediately and a further $250,000 in two months.
These funds will provide Zyl with the working capital to make the payments to the Mbila vendors under the revised settlement agreement and provide ongoing working capital.
Zyl will continue to hold its 42.86% interest in the Kangwane Central project – following the issue of 5% of the shares to the local community as per the original transaction agreements – as well as 70% of the Kangwane South Project.
