Xtract Resources said the conditional sale agreement to dispose of its 100% interest in the Manica gold project for $17.5m has lapsed due to certain conditions precedent not being met.
The proposed deal -- with Nexus Capital Ltd and Mineral Technologies International Ltd -- would thus not be effected, Xtract said.
The company confirmed its discussions with MTI, regarding revisions to the existing joint venture agreement between the parties, to mine the alluvial gold deposit at Manica, were progressing well.
It anticipated a satisfactory conclusion for both parties could be announced soon.
Separately, Xtract posted a pretax loss of £5.2m, from a year-earlier loss of £810,000.
The results included a £2.3m impairment of an intangible, from nil in the comparative period.