Vast Resources has announced the acquisition of the remaining 49.9% interest in Sinarom Mining Group, which holds interests in the Manaila Polymetallic Mine, Romania.
The remaining interest was acquired from Ni Jin Ming. This acquisition increases Vast’s ownership at this producing mine to 100% and follows the settlement of debts associated with the acquisition of its original 50.1% interest in Sinarom as announced last week.
Vast Resources chief executive Roy Pitchford said: “Having recently achieved a 44% increase in copper concentrate alongside a 371% increase in zinc concentrate produced, our Manaila mine continues to make excellent progress and strengthen its commercial value. We are accordingly delighted to increase our interest in the project to 100%.
“This simplified ownership structure will, we believe, be beneficial to the continued advancement of the mine, especially with regard to potential joint venture or debt financing opportunities being considered as we continue to focus on the expansion of the mine's open-pit and assess the potential for development of the adjacent new perimeters at Piciorul Zimbrului and Magura Neagra as part of a new modern metallurgical complex at the Manaila open-pit.”
The consideration for the purchase of the shares and outstanding loan account owned by Ni Jin Ming is $1.1m, with $400,000 payable by 31 March and the balance of $735,000 on 30 April.
Vast Resources will pay the initial payment from its existing cash resources. The final instalment will be paid from funding expected to be completed soon.
Transfer of the shares will take place after making the final payment.
Following the acquisition, Ni Jin Ming will be released from all other liabilities to the company.
Talks are continuing concerning further transactions in relation to Sinarom, which could include the introduction of a joint venture partner and securing debt at the subsidiary company level in order to help increase production at both Manaila and advance the newly acquired Piciorul Zimbrului and Magura Neagra licences, which are close to Manaila.
Both licences have indicated their prospectivity for polymetallic mineralisation and Vast is considering the potential to develop these assets as part of an enlarged Manaila Metallurgical Complex.