Eureka gold mine sells 95 percent stake to foreign investor

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LOCAL Eureka gold mine’s major stake is now owned by foreign investor Vast Resources after acquisition of a 95 percent interest.

The AIM listed company now owns the stake through an acquisition handled by its Zimbabwe group company, Dallaglio Investments.

Andrew Prelea, chief executive of Vast Resources, said the acquisition demonstrates “our continued belief in Zimbabwe and the ability to find robust assets to add to the Vast portfolio”.

“We are extremely pleased to announce the first new acquisition together with our strategic partners in Zimbabwe for many years… The Eureka mine has had historical investment in excess of US$30 million in the late 1990s.

“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 knowledge we have accumulated from our operations at Pickstone Peerless is invaluable in assessing the true value of dormant mines such as Eureka, that can be brought in to commercial production in the near term.

“At the beginning of this year I mentioned we will be pursuing new opportunities in both Zimbabwe and Romania that will create further value to shareholders utilising external funding and this is the first of those opportunities to do so.

The Company‘s economic interest in Dallaglio is 25, 01 percent. According to Kaplanherald, the $4,485 million purchase price was financed by a loan from Sub-Sahara Goldia Investments (SSGI) to Dallaglio.

“Furthermore, in the light of this transaction and of anticipated further transaction opportunities, we are giving consideration to the current holding structure of our Zimbabwe assets and will give updates to the market on this in due course,” he said.

It further said SSGI has an effective 24, 99 percent interest in Dallaglio and funding of the acquisition has been sourced by Vast‘s associated entities in Zimbabwe without recourse to Vast Resources.

Vast Resources also has operating mines in Romania.

The acquisition comes immediately after President Emmerson Mnangagwa revised the Indigenisation law to allow foreigners to own more than 49 percent in all areas except diamond and platinum.