Aim-listed copper and zinc miner Vast Resources said on Friday that, while it continued to make good progress with Mercuria Energy Group to finalise a $9.5-million prepayment offtake agreement for the construction of the metallurgical complex near the Manaila mine, and in restarting the mining activity in Bihor at the mine in Baita Plai, in Romania, the miner had extended completion by two weeks.
Mercuria requested a further extension to complete the necessary documentation phase of the transaction.
Meanwhile, the companies have had discussions with Sub-Sahara Goldia Investments with regard to the $1.68-million bridging loan due for repayment on March 9.
The company said it was awaiting written confirmation from SSGI.
“We have spent considerable time and resources with the team at Mercuria and we welcome their rigorous diligence and procedures. While acknowledging this modest delay, we appreciate and are more than happy to spend the time to complete the transaction to their satisfaction. A short delay will be more than compensated in the long term by their strategic support,” said CEO Andrew Prelea.
In January, Prelea said the company had already received a signed conditional term-sheet from another offtaker; however, it was important for Vast to team up with a company that it could build a long-term relationship with, which would add value to the company later on.
To date, Vast has received ten such offers.
“We are now moving to debt finance, rather than equity. This is beneficial, as it stops further dilution to shareholders,” Prelea added.