REG - Vast Resources PLC - Completion of transaction regarding Aprelevka
16/01/2024 10:15
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RNS Number : 8597Z Vast Resources PLC 16 January 2024
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
16 January 2024
Vast Resources plc
('Vast' or the 'Company')
Completion of transaction regarding Aprelevka Gold Mines
Vast Resources plc ("Vast"), the AIM-listed mining company, is pleased to
announce that following satisfactory due diligence pursuant to the MOU
regarding Aprelevka Gold Mines announced on 19 October 2023, Bay Square
Pacific Ltd (Bay Square) has acquired the entire share capital of Gulf
International Minerals Ltd ('Gulf'). Gulf has a 49% interest in a joint
venture with the Government of Tajikistan (holding 51%) which owns the Joint
Tajik-Canadian Limited Liability Company, Aprelevka ('Aprelevka'). Vast has
been contractually appointed to manage and develop the Aprelevka Gold Mines on
behalf of the owners and, consistent with the MOU terms previously announced
on 19 October 2023.
Highlights
· Vast will be entitled to a 10% share of the earnings before interest
and tax that Gulf receives from its 49% interest in Aprelevka;
· Vast will be entitled to a right of first refusal to convert its
entitlement into an equity interest of 10% in Gulf at any time from 1 January
2025 to 15 January 2027, and;
· Vast will be entitled to a right to acquire at market price up to a
further 20% of the shares of Gulf at any time from 1 January 2025 to 15
January 2027.
· Aprelevka has three existing tailings dams that can be reprocessed
containing high gold values of which two tailings dams can be exploited in the
near term.
Funding required to carry out the present intended development at the mines
will be facilitated by Bay Square under an interest free loan repayable in
priority to any dividends being paid by Aprelevka.
Aprelevka holds four active operational mining licences located along the Tien
Shan Belt that extends through Central Asia, currently producing approximately
11,600oz of gold and 116,000 oz of silver per annum. It is the intention of
the Company to assist in increasing Aprelevka's production from these four
mines closer to the historical peak production rates of approximately 27,000oz
of gold and 250,000oz of silver per year from the operational mines.
Two additional mines have been explored, and eight further licenced mining
areas that are currently being prospected have shown positive results as
listed in the RNS released on 19 October 2023.
Additionally, Aprelevka has three tailings dams that contain significant high
value gold that are a part of the portfolio that could yield near term
additional cash flow for the Company.
Andrew Prelea, Chief Executive Officer at Vast Resources PLC, commented:
"The Aprelevka opportunity should provide Vast with a further meaningful
source of revenue in the near-term, whilst insulating shareholders from
dilution. As managers of the Aprelevka Gold Mines, Vast will have direct
exposure to the top line growth of the assets as we work to increase
production at the operational mines back to historical highs of 27,000oz Au
and 250,000oz Ag per annum, and also exposure to the significant upside
expected from the development of the three tailings dams and eight further
exploration assets.
"We see this as a highly positive pillar of our expanding production footprint
alongside our core Baita Plai mine in Romania, and our additional production
activities in Tajikistan."
Further Information
The results shown below are NAEN code-compliant (but are not JORC compliant);
in 2023 a series of 100 trenches, at approximately one metre deep of two of
the three tailings dams were completed and are in accordance with the
Tajikistan Mineral Resource legalisation (source: Exploration and Prospecting
Report Gulf). The Company will be engaging technical consultants to provide
independent due diligence. In the meantime, the figures set out below should
be viewed with caution and as background information only.
Tailings Dam 1
Approximately L550m xW200mx H10-35m (Avg.25m) = 2.75Mil m3 at a density of 2.5
= 6.875Mil T
Hole no. Sample # Sampling depth, m Average metal grade
Au g/t Ag g/t Cu % Pb % Zn %
I III IV V VI VII VIII IX
1 201 1.00 0.38 26.8 0.07 0.10 0.10
2 202 1.00 0.46 21.0 0.06 0.05 0.08
3 203 1.00 0.43 22.4 0.06 0.07 0.01
4 204 1.00 0.38 23.1 0.05 0.10 0.09
5 205 1.20 0.20 20.5 0.06 0.08 0.07
6 206 1.10 0.48 20.9 0.04 0.04 0.09
7 207 1.00 0.40 20.1 0.04 0.07 0.08
8 208 1.00 0.33 21.4 0.05 0.09 0.11
9 209 1.00 0.28 19.8 0.03 0.07 0.08
10 210 0.70 0.68 25.1 0.06 0.08 0.10
11 211 0.70 0.31 17.2 0.03 0.06 0.09
12 212 0.90 0.29 20.2 0.03 0.06 0.09
13 213 0.80 0.30 21.4 0.04 0.05 0.10
14 214 1.00 0.32 22.5 0.03 0.08 0.11
15 215 1.00 0.39 14.0 0.04 0.06 0.10
16 216 0.80 0.31 20.7 0.04 0.08 0.09
17 217 0.80 0.24 12.7 0.03 0.05 0.08
18 218 0.70 0.35 16.6 0.05 0.07 0.10
19 219 0.80 0.29 21.1 0.05 0.10 0.10
20 220 0.90 0.59 25.6 0.08 0.09 0.12
21 221 0.70 0.56 24.8 0.06 0.11 0.10
22 222 0.90 0.31 20.7 0.03 0.07 0.07
23 223 0.90 0.25 13.5 0.09 0.08 0.06
24 224 1.00 0.29 19.0 0.02 0.04 0.07
25 225 0.80 0.27 19.7 0.07 0.10 0.10
26 226 0.80 0.41 23.0 0.05 0.08 0.09
27 227 0.70 0.32 17.4 0.08 0.05 0.09
28 228 0.70 0.26 18.2 0.07 0.06 0.06
29 229 0.80 0.60 25.9 0.06 0.07 0.07
30 230 0.80 0.27 25.0 0.04 0.08 0.10
31 231 0.90 0.30 17.7 0.04 0.05 0.07
32 232 0.80 0.34 23.9 0.05 0.07 0.05
33 233 1.00 0.30 21.3 0.04 0.08 0.09
34 234 0.90 0.56 24.1 0.07 0.06 0.10
35 235 0.90 0.45 23.2 0.06 0.07 0.09
36 236 0.80 0.27 20.6 0.07 0.08 0.10
37 237 0.80 0.60 25.8 0.07 0.07 0.10
38 238 0.90 0.31 21.4 0.03 0.06 0.07
39 239 0.90 0.32 19.6 0.05 0.10 0.07
40 240 0.90 0.44 20.7 0.06 0.07 0.09
41 241 0.80 0.44 23.5 0.06 0.06 0.06
42 242 0.90 0.47 22.0 0.06 0.07 0.09
43 243 1.00 0.25 19.3 0.02 0.04 0.05
44 244 1.00 0.44 24.7 0.06 0.04 0.08
45 245 0.90 0.32 22.2 0.08 0.06 0.01
46 246 0.90 0.31 21.2 0.04 0.05 0.08
47 247 0.90 0.38 20.1 0.04 0.08 0.09
48 248 1.00 0.32 22.0 0.05 0.08 0.04
49 249 0.80 0.30 18.7 0.03 0.07 0.08
50 250 0.9 0.28 16.0 0.03 0.06 0.08
Average 0.37 20.97
Tailings Dam 2
Approximately L400m xW200mx H10-35m (Avg.25m) = 2Mil m3 at a density of 2.5 =
5Mil T
Hole no. Sample # Sampling depth, m Average metal grade
Au g/t Ag g/t Cu % Pb % Zn %
I III IV V VI VII VIII IX
1 151 0.90 0.42 18.40 0.05 0.11 0.19
2 152 1.00 0.33 12.70 0.04 0.11 0.53
3 153 0.90 0.36 15.20 0.08 0.14 0.11
4 154 0.90 0.37 15.50 0.05 0.17 0.15
5 155 0.90 0.32 12.40 0.03 0.12 0.04
6 156 0.90 0.31 11.90 0.06 0.12 0.01
7 157 1.00 0.32 14.60 0.04 0.16 0.13
8 158 0.90 0.41 13.80 0.09 0.14 0.05
9 159 0.80 0.50 15.80 0.07 0.12 0.18
10 160 0.90 0.41 16.90 0.05 0.16 0.15
11 161 0.80 0.34 16.70 0.04 0.13 0.21
12 162 0.90 0.30 15.10 0.06 0.12 0.16
13 163 1.00 0.40 15.70 0.05 0.11 0.14
14 164 0.80 0.49 16.00 0.09 0.09 0.18
15 165 0.80 0.30 12.50 0.06 0.13 0.11
16 166 0.80 0.29 11.60 0.03 0.09 0.14
17 167 0.70 0.38 13.50 0.04 0.11 0.07
18 168 0.80 0.43 15.30 0.05 0.11 0.15
19 169 0.80 0.44 14.70 0.08 0.18 0.15
20 170 0.80 0.56 15.80 0.12 0.12 0.20
21 171 0.80 0.35 13.70 0.05 0.13 0.08
22 172 0.80 0.33 12.20 0.08 0.09 0.06
23 173 0.80 0.37 14.20 0.03 0.14 0.11
24 174 0.90 0.38 0.13 0.04 0.07 0.11
25 175 0.90 0.30 11.50 0.07 0.08 0.09
26 176 0.90 0.51 14.40 0.05 0.08 0.09
27 177 0.90 0.42 12.60 0.05 0.08 0.09
28 178 0.80 0.39 12.20 0.06 0.09 0.18
29 179 0.80 0.37 14.90 0.08 0.18 0.18
30 180 0.80 0.42 15.00 0.05 0.11 0.18
31 181 0.90 0.39 13.00 0.08 0.12 0.10
32 182 0.80 0.36 12.20 0.06 0.08 0.09
33 183 0.80 0.40 14.50 0.15 0.17 0.15
34 184 0.90 0.43 15.30 0.06 0.12 0.17
35 185 0.80 0.38 15.30 0.04 0.11 0.13
36 186 0.90 0.35 13.70 0.07 0.09 0.10
37 187 0.80 0.49 14.90 0.17 0.14 0.18
38 188 0.90 0.52 16.00 0.07 0.16 0.14
39 189 0.90 0.40 13.90 0.05 0.07 0.17
40 190 0.90 0.39 15.10 0.09 0.11 0.20
41 191 1.00 0.37 14.90 0.17 0.14 0.18
42 192 0.80 0.42 15.60 0.06 0.14 0.15
43 193 1.10 0.37 14.40 0.06 0.09 0.11
44 194 0.90 0.45 13.70 0.07 0.08 0.11
45 195 1.20 0.66 17.60 0.07 0.09 0.18
46 196 0.90 0.49 14.70 0.04 0.18 0.09
47 197 1.20 0.42 12.80 0.09 0.04 0.13
48 198 0.90 0.54 15.60 0.08 0.11 0.21
49 199 0.90 0.30 10.50 0.04 0.12 0.08
50 200 1.20 0.43 12.50 0.05 0.11 0.00
Average 0.40 14.02
Competent Person
The technical information in this announcement has been reviewed by, and the
forward-looking technical views are based on, information interpreted by Mr
Nicolae Turdean, our Romanian Country Manager and a full-time employee of the
Company. Mr Nicolae Turdean is a Qualified Person who is a Member in good
standing of the:
· Romanian National Association of Specialists in Mining Industry
· General Association of Romanian Engineers
· Romanian National Committee of Mining Engineers
Nicolae has 40 years' experience in the Romanian mining industry. He was most
recently President of the National Agency for Mineral Resources. Prior to
this, Nicolae was the Chief Executive of Cupru Min SA, the Romanian
state-owned copper producer. Nicolae has worked closely with the Ministry of
Economy and Commerce, the Minister of Economy and Finance, and the World Bank,
as well as serving on the Board of Administration for a number of companies.
Nicolae holds both a Bachelor of Mining Science and a MSc. in the Management
of Mining Activities from the Technical University of Petrosani in Romania.
The technical information and forward-looking views have also been reviewed by
and interpreted by Negru Vlad Andrei, Chief Geologist for geological and
geotechnical consultants Formin SA. The information is in the course of
further review by SRK.
Important Notices
This announcement contains 'forward-looking statements' concerning the Company
that are subject to risks and uncertainties. Generally, the words 'will',
'may', 'should', 'continue', 'believes', 'targets', 'plans', 'expects',
'aims', 'intends', 'anticipates' or similar expressions or negatives thereof
identify forward-looking statements. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of these risks
and uncertainties relate to factors that are beyond the Company's ability to
control or estimate precisely. The Company cannot give any assurance that such
forward-looking statements will prove to have been correct. The reader is
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this announcement. The Company does not
undertake any obligation to update or revise publicly any of the
forward-looking statements set out herein, whether as a result of new
information, future events or otherwise, except to the extent legally
required.
Market Abuse Regulation (MAR) Disclosure
Certain information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 as it forms part of UKDomestic Law by virtue of
the European Union (Withdrawal) Act 2018 ("UK MAR") until the release of this
announcement.
**ENDS**
For further information, visit www.vastplc.com or please contact:
Vast Resources plc www.vastplc.com
Andrew Prelea (CEO)
+44 (0) 20 7846 0974
Beaumont Cornish - Financial & Nominated Advisor www.beaumontcornish.com (http://www.beaumontcornish.com)
Roland Cornish +44 (0) 20 7628 3396
James Biddle
Shore Capital Stockbrokers Limited - Joint Broker www.shorecapmarkets.co.uk
+44 (0) 20 7408 4050
Toby Gibbs / James Thomas (Corporate Advisory)
Axis Capital Markets Limited - Joint Broker www.axcap247.com
Richard Hutchinson +44 (0) 20 3206 0320
St Brides Partners Limited www.stbridespartners.co.uk (http://www.stbridespartners.co.uk)
Susie Geliher +44 (0) 20 7236 1177
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM listed mining company with mines
and projects in Romania, Tajikistan, and Zimbabwe.
In Romania, the Company is focused on the rapid advancement of high-quality
projects by recommencing production at previously producing mines.
The Company's Romanian portfolio includes 100% interest in Vast Baita Plai SA
which owns 100% of the producing Baita Plai Polymetallic Mine, located in the
Apuseni Mountains, Transylvania, an area which hosts Romania's largest
polymetallic mines. The mine has a JORC compliant Reserve & Resource
Report which underpins the initial mine production life of approximately 3-4
years with an in-situ total mineral resource of 15,695 tonnes copper
equivalent with a further 1.8M-3M tonnes exploration target. The Company is
now working on confirming an enlarged exploration target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic Mine in Romania, which the
Company is looking to bring back into production following a period of care
and maintenance. The Company has also been granted the Manaila Carlibaba
Extended Exploitation Licence that will allow the Company to re-examine the
exploitation of the mineral resources within the larger Manaila Carlibaba
licence area.
Vast has an interest in a joint venture company which provides exposure to a
near term revenue opportunity from the Takob Mine processing facility in
Tajikistan. The Takob Mine opportunity, which is 100% financed, will provide
Vast with a 12.25 percent royalty on overall sales of non-ferrous concentrate
and any other metals produced.
Glossary
NAEN CODE - Russian Code for the Public Reporting of Exploration Results,
Mineral Resources, Mineral Reserves.
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