Goldplat PLC (LON:GDP) has failed to resolve its dispute with the Rand Refinery over a contract to process a batch of silver sulphide material and legal action is now pending.
A final report from an independent metallurgical expert appointed jointly by both parties has not enabled a settlement to be reached, said the gold recovery specialist.
A settlement proposal from Rand Refinery that involved Goldplat paying a net amount was 'completely unacceptable'.
Gerard Kisbey-Green, Goldplat’s chief executive, said: "We cannot accept a settlement proposal which implies that we owe Rand Refinery anything and will therefore be initiating legal proceedings immediately.”
Goldplat believes the Independent Expert's final report underlines that it fulfilled its obligations according to the terms of the Silver Contract and acted in good faith and with due care at all times.
It wants repayment in full for R13.5mln (approximately £780,000) owed to it by Rand.
Goldplat added it had taken steps to reduce the 'single refiner' risk and to ensure it can get material processed irrespective of the consequences of its legal action.