UK-based Vast Resources said on Wednesday that it has secured a $1.7 million (1.42 million euro) loan from Sub-Sahara Goldia Investments to progress further in securing rights to extract polymetallic ore at the Baita Plai mine in Romania.
The process of securing the mining rights is expected to be completed during September, Vast Resources said in a press release. The loan enables the process of securing the Baita Plai association on the licence to progress further without any funding delays.
Vast’s 49.9% stake in Sinarom Mining Group SRL acquired in March has been provided as additional security for the loan, which carries an interest of 1% per month and is repayable on or before March 9, 2018.
At the end of August, Vast announced that its subsidiary African Consolidated Resources is set to be granted the right to mine polymetallic ore from the Baita mine in Romania.
Vast Resources currently has an 80% interest in the mine, which is located in the Apuseni Mountains, Transylvania region. The area hosts Romania’s largest polymetallic and uranium mines.
The company now awaits execution of the final association licence, which includes getting a ministerial endorsement and approval from Romania’s National Agency for Mineral Resources.
Obtaining the right to mine at Baita Plai will represent a significant milestone in the process of expanding the mining operations of Vast in Romania, becoming the company’s second mine in country alongside its Manaila Polymetallic Mine. Vast said it now looks forward to securing the strategic investment to support growth initiatives planned at both mines.
Earlier in August, Vast Resources said it has signed a preliminary agreement for a proposed investment of up to $10 million in the mining company, to be used mostly for the expansion of its Romanian operations. The investment proposal, made by an undisclosed corporate finance and investment firm, will be made in two stages, of $8 million and $2 million, respectively.
Besides Baita Plai and Manaila polymetallic mine in Romania, Vast also owns an 80% interest in a prospecting licence over the Faneata tailings dam located 7 km from Baita Plai.
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.