24 January 2018
   
Zim family finally leave Bangkok airport
Government orders fuel price cut
5 weeks for ministers to declare assets
Mnangagwa Mugabe Part II, critics say
12th G40 member booted out of Zanu PF
Mohadi says VP post zenith of his career
EU throws weight behind ED government
Zanu PF official says Moyo used Juju
MORE NEWS
Millers rescue NRZ, procure 200 wagons
Diamond: $20m for land reclamation
MORE BUSINESS
Mukanya to perform in Harare on April 28
SA: Jazz legend Hugh Masekela dies
MORE SHOWBIZ
Bangladesh wallop sorry Zimbabwe
PSL says 2018 season starts March 10
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Sadc peace hinges on leaders' gains & loses
Mnangagwa off to Davos empty handed
MORE COLUMNISTS
 
 
Vast Resources partially offloads Zim mines
30/01/2017 00:00:00
by London South East
 
 
RELATED STORIES

ROMANIA and Zimbabwe-focused mining company Vast Resources announced on Monday that it has secured a loan facility and signed a conditional agreement for the partial disposal of a non-controlling interest in its Pickstone-Peerless Gold Mine and Giant Gold Mine, providing gross proceeds of $8m, primarily to advance the company's core activities in Romania.

The AIM-traded company said the strategic investment by SSCG Africa Holdings provided gross proceeds of $8m to Vast, by way of $4m cash consideration for the sale of 49.99% of the Company's 50% interest in the two mines

A $4m long term loan to Vast, repayable in four years with interest charged at 12% per annum, was secured on the group's mineral assets.

Vast said the transaction provided a "significant" cash injection to the company by crystallising a portion of the value of Pickstone and Giant, whilst retaining a controlling interest in the operating asset and optionality on future Zimbabwean gold properties.

Proceeds of the transaction would ensure Vast is fully funded to accelerate development of its core Romanian portfolio of polymetallic mining interests into positive cash flow, the board said.

The funding was achieved without the issue of additional equity or convertible securities by the company, it explained, and the disposal remained subject to certain conditions precedent including due diligence and regulatory approval.

The loan was subject to drawdown in two tranches of $2m.

"This transaction provides Vast with the financial strength to redirect capital to the area of the business which we believe will yield the maximum long term value accretion for the company," said chief executive Roy Pitchford.

"By accelerating the development of our assets in Romania, enabling the company to become cashflow positive without the need for additional dilutionary fundraisings, I believe this transaction heralds a new phase of growth for Vast where we have the ability to rebuild shareholder value."

Pitchford said the company had been presented with a uniquely exciting opportunity to re-commission numerous high value brownfield mining assets across Romania, and through the application of a fully funded and robust investment strategy, he was confident that Vast has the potential to be a significant copper and base metal producer in Europe.



Advertisement

"Our immediate priority is to expand and develop our current resources in and around the Manaila Polymetallic Mine complex and establish one of Europe's largest copper mining projects.

"SSA has demonstrated itself to be an extremely knowledgeable and enthusiastic strategic investor."

He said with exceptional influence in Africa, particularly Zimbabwe, SSA's involvement in the development of other associated gold projects should provide further ancillary benefits in the future.

"SSA has also expressed its interest in Vast's wider portfolio, including our Romanian interests, and this may prove fruitful as Vast evaluates longer term expansion plans in Romania; a country which we maintain offers an enormous opportunity for the company."


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker