Vast Resources presented with funding options for Romania development
Updated : 08:18
Romania and Zimbabwe-focussed mining company Vast Resources advised shareholders on Friday that, as a result of the “consistently positive” results delivered from the drilling and development programme at the Carlibaba Deposit located next to its producing Manaila Polymetallic Mine in Romania, coupled with the 2018 off-take bidding process for the concentrate production, it has been presented with a number of potential non-dilutionary financing options to advance its Romanian interests.
The AIM-traded firm said that as a result, it was now in discussions with metal traders and debt providers to finance the new metallurgical complex planned for Manaila and in particular to cater for the extended mine life that the scheduled new open pit at Carlibaba provides.
“The drilling results to date at Carlibaba support the potential for a considerable extension to life of mine at Manaila which has enabled Vast to obtain medium term financing possibilities for Sinarom Mining Group, the company's 100% owned subsidiary, to facilitate the construction and commissioning of the new metallurgical complex,” Vast’s board said in its statement.
“Internal company estimates have highlighted that the new metallurgical complex could result in a saving of up to 25% on the current production costs by eliminating the transport of ore and waste between the mine, the Iacobeni metallurgical complex, and the current tailings facility.”
Vast said the possible introduction of a debt facility would reduce the company's requirement from the potential strategic investors referred to in its announcements on 24 July and 25 September, or of any other potential incoming partner at the subsidiary level by almost 50% of the $10m in the directors' estimation.
“This would grant management the opportunity to reconsider the current financing proposals to the company and retain a greater proportion of the group's assets in Romania.”
The company said it would update the market with further information in due course.