During the quarter the company had total operating and investing cash flows of just over $1.2 million and net financing cash flows of almost $1.4 million through proceeds from issues of shares and options.

When balanced with the $1.27 million the company had at the beginning of the quarter, Zyl ends the period with $1.4 million cash.

The South Africa-focused metallurgical coal company’s main assets are the Kangwane anthracite projects, comprising the Kangwane Central, Kangwane North and Kangwane South areas.

The company recently settled a legal dispute over the Mbila project in the KwaZulu Natal province which consists of the Mbila mining right covering 19,180 hectares and the Msebe prospecting right covering 52,946ha.

On April 4, Zyl announced that the legal dispute with the vendors of the Mbila project, stemming from an October 2012 funding transaction, had finally been settled by paying the vendors’ legal costs and transferring the vendors its interest in the project.

Under the terms of the settlement, which Zyl outlined in a statement, a placement of 68 million shares at 2c per share to Chinese vendor Prestige Glory will be undertaken to raise $1.4 million.

Prestige Glory will also undertake an underwritten non-renounceable rights issue, through a prospectus issue, on the basis of at least one Zyl share for every two Zyl shares held at the record date at a minimum issue price of 2c per share.

Prestige Glory will fully underwrite the rights issue or procure that the rights issue is fully underwritten. The issue will raise a minimum of $5.6 million net of costs.

Following the resolution of the dispute and the completion of a placement, rights issue and convertible notes, the Mbila vendors and Prestige Glory hold approximately 35% and 21%, respectively, of the issued share capital of Zyl.

Prestige Glory can increase its shareholding to approximately 34% should it take up all of the shares to be issued.

Zyl recently updated the JORC resource for the project, increasing the measured and indicated anthracite resources by 28 million tonnes.

The total JORC-compliant anthracite resource for the project now stands at 125Mt, down from an initially estimated 154.2Mt from August 2012.

However, the company said the update provided more confidence in the reserves as the measured and indicated resources now comprised 69.9% of the total resources.

Two main anthracite types occur in the area, with the two main target seams having an average thickness of 1.07m and 12m.

At the Kangwane projects a number of contractual negotiations occurred during the quarter and following their completion, ownership will stand at 50.1% of the Kangwane Central project, 50.1% of the Kangwane North project and 70% of the Kangwane South project.

The quarter took its toll on the company’s management with Ian Benning stepping down as chief executive officer and director of Zyl and non-executive chairman Glenn Whiddon resigning from the board.