Earlier this year, the company renegotiated the payment terms of the acquisition with the project’s vendors so that the two payments to secure 51% ownership totalling $13.6 million would be due no later than December 31.
Today Zyl released a statement asserting it did not consider itself bound by the agreement and that “consequently no further payment in terms of the agreement are to be made”
Zyl said that if the Mbila vendors did not accept its position, the company would likely pursue dispute resolution proceedings.
In November, the company said the transaction had been put on hold until “engagements with the vendors are concluded”
Zyl was unavailable for comment as of press time.
In October Zyl announced it would be expanding the scope of its feasibility study for Mbila following provision of $18 million in funding form an unnamed investor.
The 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.