Vast Resources sells its African assets to develop Romanian project

David McHutchon | February 1, 2017 | Views: 193

Image: Vast Resources

Vast Resources plc, the AIM listed mining company with operations in Romania and Zimbabwe, announced that it has 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 US$8 million principally to advance the Company’s core activities in Romania.

The deal includes strategic investment by SSCG Africa Holdings Ltd (“SSA”) providing gross proceeds of US$8 million to Vast, by way of

  • US$4 million cash consideration for the sale of 49.99 per cent. of the Company’s 50per cent. interest in the Pickstone-Peerless Gold Mine and the Giant Gold Mine
  • US$4 million long term loan to Vast – repayable in four years with interest charged at 12 per cent. per annum, secured on the Group’s mineral assets.

“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. By accelerating the development of our assets in Romania, enabling the Company to become cash flow 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”, Roy Pitchford, Chief Executive of Vast, commented.

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