Central Rand Gold Ltd. said June 5 that IPROP Pty. Ltd. withdrew its application lodged with the High Court of South Africa Gauteng Local Division regarding a dispute over lease agreements.
In 2005, Central Rand Gold acquired Ferreira Estate Investment Co. Ltd. from IPROP and its subsidiary. Ferreira Estate holds the mining right that the company currently owns, and which is under renewal.
IPROP lodged an application in the court to have a settlement agreement that it entered with Central Rand Gold in 2009 over the lease dispute ratified.
The parties continued to negotiate to reach a commercially satisfactory arrangement, while IPROP removed the court hearing scheduled for May 19.
Following the withdrawal of the application, each party will bear its own legal cost.
Central Rand Gold noted that the company's cash position remains challenging and is considering a number of options to secure financing, which may include the sale of operating assets.
Meanwhile, the company's shares will remain suspended.