Wentworth Resources said it would relinquish the Tembo block in Mozambique next year.
The company would also exit Mozambique entirely, closing its Maputo office and shutting down activities in the Muxara and Palma camps.
The block was scheduled to be relinquished on 30 April.
The relinquishment would release the company from any further appraisal work programme obligations, with no material costs foreseen ahead of relinquishment.
The value of the Tembo licence was expected to be written down in full in the current financial year 2018, Wentworth said.
‘We have now completed a thorough technical and commercial review of the company’s asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate,’ chief executive Eskil Jersing said.