UK-based exploration firm Vast Resources has acquired a 23.75% economic interest in the Eureka gold mine in Zimbabwe.

The deal was made possible following the acquisition of a 95% interest in Eureka mine’s current holder Delta Gold Zimbabwe by Dallaglio Investments, which is 25.01% owned by Vast.

Dallaglio now holds 95% interest in the mine following the $4.485m acquisition agreement.

Funding for the transaction was arranged via a loan from Sub-Sahara Goldia Investments (SSGI), which owns an effective 24.99% interest in Dallaglio.

"We believe this to be a highly attractive acquisition target given the size of the resource and level of investment in equipment made to date."

Vast Resources chief executive Andrew Prelea said: “We are extremely pleased to announce the first new acquisition together with our strategic partners in Zimbabwe for many years.

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“This demonstrates our continued belief in Zimbabwe and the ability to find robust assets to add to the Vast portfolio.

“We believe this to be a highly attractive acquisition target given the size of the resource and level of investment in equipment made to date, and I look forward to providing updates regarding development and commissioning at Eureka in the coming months.”

The transaction will also see Dallaglio offer a $1.8m financing package to Delta Gold in order to meet the company’s current creditor commitments.

Delta previously invested a historic amount of $30m at the Eureka site.

The mine was originally intended to achieve production levels of up to 70,000 ounces (oz) of gold (Au) per year from an open-pit operation.

Eureka is currently undergoing a care and maintenance programme, while plans have been outlined to restart production from the site in the near future.

The acquisition also provides Vast with access to a 1.8 million tonnes per annum (Mtpa) in-situ processing plant and associated infrastructure.

The mine has an indicated mineral resource of 13.4Mt at an average grade of 1.78 grams per tonne (g/t) of Au for 1,081,700oz Au.