"We are very pleased to have been able to progress discussions with Rand Refinery to this point and to have agreed terms for a settlement of the dispute," said Gerard Kisbey-Green, chief executive of the gold recovery specialist, after the memorandum of understanding was signed.
"While the proposed amount is less than the full amount claimed by us, we believe that the proposed settlement and expected consequent expeditious conclusion of the arbitration process will not only alleviate the time and costs of the agreed legal process and free up valuable management time, but it also will allow business between the two parties to resume on the basis of a fresh start with renewed energy and focus in all areas to further strengthen and build the long standing relationship that exists between the two companies."
The two companies have been in dispute for months over a contract to process silver.
Further details will be provided once the settlement agreement has been signed, added Goldplat.
READ: Goldplat’s core recovery business provides platform for wider growth in exploration and mining
Broker VSA repeated a 'buy' after the news and 17p price target (shares are currently at 7.875p).
"GDP has stated that while this amount is less than the full amount claimed, given the positive impact on legal costs and management time of a shortened process this is a benefit to both parties. GDP previously indicated that an arbitration process was due to be held in June 2018," it said.
"We believe that the dispute has weighed on the shares for some time. With a positive resolution now realisable the removal of this overhang represents a positive step for GDP and will allow the company to move forward."