Baita Plai Polymetallic Mine licence <Origin Href="QuoteRef">VAST.L</Origin>

Vast ResourcesAnnouncement

23/11/2015 07:00

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
 23 November 2015 
 Vast Resources plc 
 ("Vast" or "the Company") 
 
 Baita Plai Polymetallic Mine licence 
 
 Vast Resources plc, the AIM-listed mining company, is pleased to announce
that the Romanian State owned company, Baita SA, has signed an agreement (the
"New Agreement") with Vast's 80% owned Romanian subsidiary, African
Consolidated Resources SRL ("Vast Romania") setting out the steps to be taken
in order for Vast Romania to obtain the right to mine (the "Mining
Sub-licence") Baita Plai Polymetallic Mine ("BBPM").  The New Agreement,
which was initiated by Baita SA, is independent of Vast Romania's rights to
obtain a Mining Sub-licence through its existing merger agreement with its
subsidiary, Mineral Mining SA ("MMSA") (the "Merger Agreement"), the final
completion of which has thus far been delayed and remains delayed due to
approval processes in the Romanian Courts. 
 
 As announced on 2 September 2015, the miners at BBPM staged a sit-in
demonstration underground and a hunger strike in support of Vast which was
terminated through the personal intervention of the Minister of Economy and
the President of the Romanian National Mining Agency ("ANRM") who gave
assurances that all that was necessary to enable the issue of the Mining
Sub-licence to Vast Romania would be processed with due expedition. 
 
 The steps which Baita SA has undertaken to follow under the New Agreement
are: seeking to obtain the agreement of the Ministry of Economy for the Mining
Sub-licence; signing the contract for the Mining Sub-licence; submitting a
bi-partisan letter, together with Vast Romania, to ANRM for the Mining
Sub-licence; and seeking to secure ANRM's agreement to the Mining
Sub-licence.  
 
 The New Agreement also provides that, within 48 hours of ANRM's agreement to
the Mining Sub-licence, Vast Romania will pay Lei 2,530,321 (approx.
US$608,744) due to Baita SA by MMSA, which is a debt to which Vast Romania
would already have been liable on completion of the Merger Agreement as
explained in the announcement of 24 March 2015.  In addition, it is provided
that Vast Romania pay Baita SA Lei 1,525,404 (approx. US$367,000) less a debt
due by Baita SA to MMSA of Lei 322,400 (approx. US$77,560) in twelve equal
monthly instalments with the first payment due three months after ANRM's
agreement of the Mining Sub-licence.  The figure of Lei 1,525,404 represents
de-watering costs for the benefit of BBPM borne by Baita SA during MMSA's
administration. 
 
 As a result of this new Agreement, although it is anticipated that the Merger
Agreement will be in due course completed, the obtaining of the Mining
Sub-licence by Vast Romania is no longer dependent on its completion. 
 
 Andrew Prelea, President of Vast Romania, said: 
 "This agreement is extremely important and transformational for the
Company.  I am confident that the matter of issuing the Mining Sub-licence to
BPPM will now proceed to completion swiftly and I am hopeful that BPPM will be
in production during Q1 2016."  
 
 ** ENDS ** 
 
 For further information visit www.vastresourcesplc.com or please contact: 
 
  Vast Resources plc Roy Tucker (Finance Director)                                            +44 (0) 1622 816918  +44 (0) 7920 189012                                  
    Roy Pitchford (Chief Executive Officer)                                                  +40 (0) 372 988 988  (O) +40 (0) 741 111 900  (M) +44 (0) 7793 909985     
  Andrew Prelea (President of Vast Romania)                                                   +40 (0) 372 988 988  (O) +40 (0) 747 118 888  (M)                         
    Strand Hanson Limited - Financial & Nominated Adviser  James Spinney  James Bellman      www.strandhanson.co.uk                                                   
                                                                                              +44 (0) 20 7409 3494                                                         
    Daniel Stewart and Company plc - Joint Broker  Martin Lampshire David Coffman             www.danielstewart.co.uk                                                  
                                                                                              +44 (0) 20 7776 6550                                                         
    Dowgate Capital Stockbrokers Ltd - Joint Broker Jason Robertson Neil Badger                www.dowgatecapitalstockbrokers.co.uk +44 (0)1293 517744                  
    St Brides Partners Ltd Charlotte Heap Hugo de Salis                                        www.stbridespartners.co.uk                                               
                                                                                              +44 (0) 20 7236 1177