Vast takes full ownership of Romania mine

JOHANNESBURG (miningweekly.com) – Aim-listed miner Vast Resources now owns 100% of the Manaila polymetallic mine, in Romania, following the completion of the acquisition of the remaining 49.9% of Sinarom Mining Group from vendor Ni Jin Ming.

This follows the settlement of $1.14-million in debts associated with the company's acquisition of its original 50.1% interest in Sinarom – $400 000 is payable by month-end, with the balance of $735 000 due on April 30.

The initial payment will be funded from existing cash resources while the final instalment is expected to be funded by the company raising additional funding at the asset level, which it expects to complete shortly.

Subject to completion of the transfer of the shares, Jin Ming is released from all other liabilities to the company.  In addition, the outstanding liability to Jin Ming of $646 000 in respect of the acquisition of the Baita Plai polymetallic mine, also in Romania, is released.

The net effect of this transaction on the company's balance sheet will be determined at the next reporting date.  In the year to March 31, Sinarom reported revenue of $1.81-million and a loss after tax of $1.38-million.

Discussions are continuing concerning further transactions in relation to Sinarom, which could include the introduction of a joint venture (JV) partner or securing debt at the subsidiary company level to 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.

Vast CEO Roy Pitchford noted that having recently achieved a 44% increase in copper concentrate alongside a 371% increase in zinc concentrate produced, the Manaila mine continued to make “excellent progress” and strengthen its commercial value.