“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 says in a statement to the ASX.
It also says it has initiated dispute resolution procedures.
Zyl had earlier renegotiated the payment terms of the acquisition with the projects vendors so the two payments to secure 51% ownership totalling $13.6 million would be due no later than December 31.
The company said it believed it was not bound by the agreement and would be making no further payments.
In November, Zyl said the transaction had been put on hold until “engagements with the vendors are concluded”