Pelican Resources agreed in June 2015 to sell the Romblon project on Sibuyan Island to British Virgin Islands registered company Dynamo Atlantic for $A4.7 million.
Dynamo subsequently handed over $1.41 million in initial payments, while Pelican sought to get its joint venture partner at the project to agree to the sale.
Last month Pelican said it had gained the agreement of its partner, however, Dynamo is now trying to get out of the deal - and wants the $1.41 million back.
Given the uncertainty that has emerged in recent months about these sorts of mining ventures in Philippines - with a possible ban on open pit mining - Dynamo's reticence to now not proceed is unsurprising.
However whether it has a legal basis to do so remains to be seen.
Pelican started the quarter with $915,000 cash.
Shares in Pelican were trading this week at 0.1c, capitalising the company at $3.6 million.