Vast Resources takes indirect stake in Romania's Blueberry Project

The AIM-traded firm said the ‘Golden Quadrilateral’ hosted the prolific Baia de Aries gold mine, the 17.1Moz Rosia Montana Mine and 7.2Moz Rovina Valley Project.

It said the acquisition consisted of an interest of 29.41% in a brownfield perimeter, covering a total of 7.285 square kilometres in the ‘Golden Quadrilateral’ of Western Romania.

The Blueberry Project was said to be adjacent to the previously-producing Baia de Aries mine, which operated until 2004 and was reported to have produced 20% of the historical gold production from the Golden Quadrilateral.

Historic work across the perimeter area had demonstrated prospectivity for gold and polymetallic mineralisation, the company claimed, with sample values of up to 22.4g/t of gold said to have been obtained from historic soil sampling.

A drilling programme and assaying was underway, which Vast anticipated to deliver sufficient information to support an inferred JORC mineral resource for gold and other polymetallic minerals including silver, copper, lead and zinc in “one or more” of several distinct breccia pipes.

Following expiry of the exploration licence over Blueberry Project, Vast said the holder had the right under the Romanian mining law - subject to satisfaction of certain conditions - to migrate that to an exploitation licence by 31 December.

The transaction was structured to be non-dilutive to Vast shareholders, with the initial acquisition to be satisfied in new shares in Vast’s newly formed subsidiary EMA Resources, which would be financed at a project level.

EMA was to be issued with an initial interest of 29.41%, and the retention of that interest was conditional on EMA procuring funding of $1m by 31 August, or such later date as the vendors could agree, with the acquisition not requiring any regulatory approval in Romania.

Vast said its intention was for EMA to develop into a standalone enterprise, significant enough to justify an initial public offering targeted by the end of 2019.

Pre-IPO costs were expected to be funded by third party finance, with no material cost commitment for Vast.

The company said it would have management and control of the future mining operations, and also over the exploration programme and the IPO process in consideration of a fee equal to 10% of pre-IPO costs.

“As shareholders will be aware, my enthusiasm for and confidence in the reinvigoration of the Romanian mining industry remains a central pillar of Vast’s future growth strategy and I am delighted to present this acquisition to shareholders,” said Vast chief executive Andrew Prelea.

“Due to the structure of this transaction, Vast would benefit from the significant upside potential of developing the Blueberry Project whilst safeguarding investors from significant dilution.

“Work has already started at Blueberry and we look forward to reporting the results of drilling in the coming weeks in order to begin to give the market a tangible sense of the size and quality of this significant mineralised system in addition to our path to developing the project and ultimately crystallising value for Vast shareholders through a proposed IPO.”