UK-based Vast Resources said on Thursday it has received an offtake offer of $9.5 million (7.6 million euro) from Mercuria Energy Group for up to 100% of the copper and zinc concentrate produced at Vast’s Manaila and Baita Plai mines in Romania.
Vast will use the funds to expand and optimize the Manaila mine as well as to start production at the Baita Plai mine, it said in a press release.
Mercuria is part of Mercuria Energy Group, one of the largest integrated energy and commodity trading companies globally.
“On finalisation of this facility, we anticipate that the funds will enable us to deliver all of our near-term goals in Romania, specifically the expansion and optimisation of our Manaila mine, and, subject to the grant of the licence, the landmark commencement of production at our Baita Plai mine with no equity dilution to shareholders on the basis that the Company complies with the terms of the facility,” CEO Andrew Prelea said.
The company also said it has agreed to repay by the end of 2019 a loan granted by Sub-Sahara Goldia Investments. This would be 13 months ahead of schedule.
In November, Vast Resources announced that it has raised 1 million British pounds ($1.3 million euro) to develop its polymetallic mines in Romania.
The company also said that it intends to raise a further 1.3 million British pounds through an open offer of up to 238.1 million shares at the same placing price. Vast added it is also working to finalize long-term financing to ensure that its Baita Plai and Manaila mines reach their production objectives.
Vast Resources, formerly known as African Consolidated Resources Plc, is an emerging mid-tier, multi-commodity, multi-jurisdictional development and mining company with a project portfolio covering gold, nickel, copper, phosphate and diamonds. It also owns a gold mine in Zimbabwe.