UK-based mining company Vast Resources said on Monday that it has sold some of its assets and contracted a long-term loan, raising $8 million to finance operations in Romania.
Vast has signed a conditional agreement to sell 49.99% of its 50% interest in its Pickstone-Peerless gold mine and Giant gold mine in Africa to SSCG Africa Holdings Ltd for $4 million. The group has also agreed to a $4 million long-term loan from SSCG.
“Proceeds of the transaction ensure Vast is fully funded to accelerate development of the company’s core Romanian portfolio of polymetallic mining interests into positive cash flow,” the company said in a press release.
In July 2015, Vast acquired a 50.1% interest in Sinarom Mining Group, the owner of the Manaila Polymetallic Mine in Suceava county, northern Romania. In October last year, it started to produce zinc at the mine, targeting an output of 150 tonnes per month.
“Our immediate priority is to expand and develop our current resources in and around the Manaila mining complex and establish one of Europe’s largest copper mining projects,” CEO Roy Pitchford said.
“This is a pivotal transaction for Vast which allows us to strategically focus our efforts in Romania and presents the company with an outstanding opportunity to develop what could be one of the largest copper operations in Europe, chairman of Vast Brian Moritz added.
In December, Vast has been granted two new prospecting licences, which have demonstrated polymetallic mineralisation, in the vicinity of the Manaila mine. The Piciorul Zimbrului and Magura Neagra licences are both located in the Bistrita-Nasaud county of Romania, near the towns of Zagra Talisua and Zagra Telciu respectively.
The company’s portfolio also includes the Baita Plai Polymetallic Mine in Romania, where work is currently underway towards obtaining the relevant permissions to start developing and ultimately commissioning the mine.
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, in Africa.