Acquisition of remaining 49.9% of Sinarom Minin...
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 Roy Pitchford (Chief Executive Officer) | www.vastresourcesplc.com +44 (0) 20 7236 1177 |
| Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle | www.beaumontcornish.com +44 (0) 020 7628 3396 |
| Brandon Hill Capital Ltd - Joint Broker Jonathan Evans | www.brandonhillcapital.com +44 (0) 20 3463 5016 |
| Peterhouse Corporate Finance Ltd - Joint Broker Duncan Vasey | www.pcorpfin.com +44 (0) 20 7469 0936 |
| St Brides Partners Ltd - Financial PR Susie Geliher Charlotte Page | www.stbridespartners.co.uk +44 (0) 20 7236 1177 |
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).
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
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