Vast Resources plc Acquisition Of Remaining 49.9% Of Sinarom Mining Group Srl
22 March 2017 - 11:30PM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
22 March 2017
Vast Resources plc
("Vast" or the "Company")
Acquisition of remaining 49.9% of Sinarom Mining Group SRL
Vast Resources plc, the AIM-listed mining company with operating mines
in Romania and Zimbabwe, is pleased to announce the acquisition from Mr
Ni Jin Ming of the remaining 49.9% of Sinarom Mining Group SRL
("Sinarom") through which the Company owns its interest in the Manaila
Polymetallic Mine ("Manaila") in Romania. This increases Vast's
ownership of the producing mine to 100% and follows the settlement of
debts associated with the Company's acquisition of its original 50.1%
interest in Sinarom, as announced on 14 March 2017.
The consideration for the purchase of the shares and outstanding loan
account owned by Mr Ni Jin Ming is US$1,135,000, with US$400,000 payable
by 31 March 2017 and the balance of US$735,000 on 30 April 2017. The
initial payment will be funded from existing cash resources whilst the
final instalment payable on 30 April 2017 is expected to be funded by
the Company raising additional funding at the asset level, which it
expects to complete shortly. Transfer of the shares takes place on
making of the final payment. Subject to completion of the transfer of
the shares, Mr Ni Jin Ming is released from all other liabilities to the
Company. In addition, the outstanding liability to Mr Ni Jin Ming of
US$646,000 in respect of the acquisition of the Baita Plai Polymetallic
Mine in Romania - as explained in the announcement of 7 July 2015 - is
released. The net effect on the Company's Balance Sheet of this
transaction coupled with the arrangements announced on 14 March 2017
will be determined at the next reporting date. In the year to 31 March
2016 Sinarom reported revenue of US$1.812 million and a loss after tax
of US$1.375 million.
Discussions are continuing concerning further transactions in relation
to Sinarom, which could include the introduction of a joint venture
partner and / or 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
proximal to Manaila. Both licences have demonstrated their
prospectivity for polymetallic mineralisation and Vast is considering
the potential to develop these assets as part of an enlarged Manaila
Metallurgical Complex.
Roy Pitchford, Chief Executive of Vast, commented: "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 per
cent. 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."
**ENDS**
For further information, visit www.vastresourcesplc.com or please
contact:
Vast Resources plc www.vastresourcesplc.com
Roy Pitchford (Chief Executive Officer) +44 (0) 20 7236 1177
Beaumont Cornish - Financial & Nominated Adviser www.beaumontcornish.com
Roland Cornish +44 (0) 020 7628 3396
James Biddle
Brandon Hill Capital Ltd - Joint Broker www.brandonhillcapital.com
Jonathan Evans +44 (0) 20 3463 5016
Peterhouse Corporate Finance Ltd - Joint Broker www.pcorpfin.com
Duncan Vasey +44 (0) 20 7469 0936
St Brides Partners Ltd - Financial PR www.stbridespartners.co.uk
Susie Geliher +44 (0) 20 7236 1177
Charlotte Page
The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 ("MAR").
Notes
Vast Resources plc is an AIM listed mining and resource development
company focussed on the rapid advancement of high quality brownfield
projects and recommencing production at previously producing mines in
Romania.
Vast Resources currently operates the Manaila Polymetallic Mine in
Romania, which was commissioned in 2015. 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.
The Company also has interests in a number of projects in Southern
Africa including a 25 per cent. interest(*) in the producing
Pickstone-Peerless Gold Mine in Zimbabwe.
(*) Vast ownership is currently 50% (25.01% when SSCG Africa Holdings
Ltd financing conditions precedent are fulfilled as per announcement on
30 January 2017).
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Vast Resources plc via Globenewswire
http://www.acrplc.com/
(END) Dow Jones Newswires
March 22, 2017 08:30 ET (12:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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