UK-based Vast Resources said that its wholly owned Manaila polymetallic mine in Romania will only be reopened after a corporate restructuring, that is currently being prepared, is finalised.
“The board and management have decided to continue to keep the mine on care and maintenance temporarily in order to reduce costs, and to reopen once the refinancing of the group is completed and an effective mine plan that will achieve profitability, can be implemented,” the AIM-listed mining company said in a statement.
Manaila mine has been on care and maintenance since mid-December 2018 due to winter weather conditions. It will not now be re-opening in March despite improved weather conditions, Vast Resources said.
“This decision is based on a full corporate restructuring that seeks to implement a consolidation of the group’s assets to reduce costs and introduce near term positive revenue generating income that will ensure the growth of the company,” Vast Resources said.
Despite the delay in finalising a new financing agreement for Baita Plai mine, the company is currently engaged in restructuring its entire debt and asset portfolio to enable longer term funding for the exploitation of all of the its strategic assets, it said.
In October, Vast Resources received approval from Romania’s National Agency for Mineral Resources (ANRM) to mine at Baita Plai polymetallic site, where it holds an 80% interest.
In January, Vast Resources said it plans to apply for exploitation licence for its gold-focussed polymetallic Blueberry project in western Romania by the end of the first quarter of 2019. Vast Resources holds 29.4% stake in the project through its subsidiary EMA Resources.
Besides Baita Plai, Manaila mines and the stake in Blueberry, Vast Resources 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.