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28/05/2024
Mining News

Vast Resources gains approval needed to secure funding for Romania projects

The Reserve Bank of Zimbabwe has given the necessary approval for the disposal by Aim-listed Vast Resources of noncontrolling interests in the Pickstone-Peerless gold mine and the Giant gold project, in Zimbabwe.

In January, Vast entered into an agreement with SSCG Africa Holdings, comprising a $4-million long-term loan and a $4-million payment for acquiring 49.99% of Vast’s principal Zimbabwean assets.

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The transaction was dependent on the RBZ’s approval of the assignment of 49.99% of Vast’s loan account with Canape.

The $4-million payment can now be transferred to Vast, completing the $8-million financing that will be used to advance the company’s activities in Romania.

Vast in March acquired the remaining 49.9% of Sinarom Mining Group, giving it full ownership of the Manaila polymetallic mine, in Romania. At the time, the company said it was in discussions about the potential introduction of a joint venture partner, or securing debt at the subsidiary company level, to increase production at the Manaila mine, as well as to advance newly acquired prospecting licences for the Piciorul Zimbrului and Magura Neagra projects.

“[The SSA] transaction, together with possible further transactions with Sinarom . . . will provide us with the capital to move forward with our optimisation plans for our producing Manaila Polymetallic mine and other interests in Romania.

“We believe this area will yield the best long-term value opportunity for the company without the need to dilute our shareholders. Importantly, we have also retained the controlling interest in our Zimbabwean projects and have exposure to the upside which these may deliver through our ongoing 25% economic interest,” Vast CEO Roy Pitchford commented on Tuesday.

Source: miningweekly

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