British group Vast Resources and the state-owned firm Baita, which holds the license for the Baita Plai mine in Western Romania, have reached an agreement on the mine’s exploitation.
The association process will be completed this month.
As part of the agreement, the British group needs to pay the Romanian company some USD 1.6 million. Vast Resources borrowed the money from the African investment fund Sub-Sahara Goldia Investments.
The British group’s local subsidiary, African Consolidated Resources, was selected by the Romanian firm Baita to exploit the Baita Pai mine, Vast Resources announced at the end of August. The production at the polymetal mine is expected to begin by the end of the year.
Vast Resources also operates the Manaila polymetal mine in Suceava county, Eastern Romania.
In July, Vast Resources reached a preliminary agreement with an investor whose name was not made public, but which has a “significant experience in Romania”, to get a financing of up to USD 10 million. In exchange, the investor would get a 29% stake in the British company.