Vast Resources plc Update On Strategic Investment And Completion Of Acquisition Of Remaining 49.9% Of Sinarom Mining Group Srl
26 May 2017 - 11:00PM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
26 May 2017
Vast Resources plc
("Vast" or "the Company")
Further update on Strategic Investment by SSCG Africa Holdings Ltd
Completion of Acquisition of remaining 49.9% of Sinarom Mining Group SRL
Vast Resources plc, the AIM-listed mining company with operations in
Romania and Zimbabwe, is pleased to give a further update on the
financing arrangement with SSCG Africa Holdings Ltd and its group
("SSA") originally announced on 30 January 2017 and last updated on 22
May 2017 (the "SSA Transaction") under which the Company was to receive
gross proceeds of US$8 million principally to advance the Company's core
activities in Romania. This comprised a US$4 million payment for the
sale of 49.99 per cent in the Company's principal Zimbabwean assets (the
"Disposal") and a US$4 million long term loan, repayable in four years
(the "Loan"). Completion of all aspects of the SSA Transaction were
dependent on the approval of the assignment of 49.99 per cent. of Vast's
loan account with Canape (the "Assignment") by the Reserve Bank of
Zimbabwe ("RBZ") by 7 April 2017, later extended to 2 June 2017. Final
approval by RBZ remains outstanding. No proceeds have been received from
the Disposal and US$3 million has been drawn down on the Loan.
The Company continues to work closely with the RBZ to conclude the
Assignment, however in the interim period, as a show of continued
support of Vast, SSA has agreed to advance the final US$1 million of the
Loan.
In relation to the Company's acquisition of a 49.9% interest in Sinarom
Mining Group SRL ("Sinarom"), as announced on 22 March 2017, US$735,000
was due on 30 April as a final instalment for completion of the
acquisition. US$100,000 of this was paid on 30 April 2017 and the
drawdown from SSA has been used to fund the US$635,000 balance. .
The discussions referred to in the Company's announcement of 22 March
2017 concerning further transactions in relation to Sinarom, and also
relating to the advancement of the recently acquired Piciorul Zimbrului
and Magura Neagra licences proximal to Manaila, continue and further
announcements will be made in relation to this as appropriate.
**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 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").
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
May 26, 2017 09:00 ET (13:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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