Bass Metals has been placed in to a trading halt pending an announcement to the Australian Securities Exchange on Thursday.
The company has been in discussions with a potential buyer for its Hellyer mine operations in the North West.
The ailing miner wound down the operations last year, retrenching more than 100 workers.
Bass is seeking $20 million in damages from Singapore firm LionGold after it pulled out of a $14 million deal to buy the Hellyer operations last year.