Vast Resources plc / Symbol: VAST / Index: AIM / Sector: Mining
October 6, 2022
Extensive plc resources
(“Vast” or the “Company”)
New Strategic Levy Relationship in Tajikistan
Vast Resources plc, the AIM-listed mining company, is pleased to announce that following the successful opening of the Takob Mine Processing Project at the Tajikistan Tajik Mine (“the Project”) with the public joint-stock company Korkhanai Boygardonii Takob (“Takob”) he signed an exclusive purchase agreement with Trafigura PTE. Ltd, one of the world’s leading independent commodity trading and logistics companies for the sale of bulk concentrates produced through the project.
As previously announced, the Company’s stake in the project is through Central Asia Investments Ltd, in which Vast holds a 49% stake out of a 50% stake in Central Asia Minerals and Metals Ore Trading FZCO (“CAMM”) which has entered into an agreement with Takob (the “Framework Agreement”).
Under the framework agreement, the mine must produce around 7,000 tonnes per month of ore containing at least 1.5 to 2% lead, 1.2 to 1.4% zinc and 27% fluoride.
Takob will continue to extract ore at the mine and produce fluoride concentrate. Takob has committed to supply no less than 1,000,000 tonnes of ore to be processed under the project which is expected to operate with the current state of resources for 12 years.
CAMM has also been appointed under the Master Agreement as Takob’s exclusive agent to market and sell all non-ferrous concentrates and precious metals from the Takob mine, including but not limited to lead, zinc, gold and silver.
The Company and Trafigura have agreed terms and conditions for Trafigura to purchase bulk concentrate with lead, zinc, gold and silver as liabilities under a standard market price contract.
Vast will receive an equity interest equivalent to a 12.25% royalty on all sales of non-ferrous concentrate and any other metal produced by the Takob processing project.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global sourcing, Trafigura connects the world to the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move raw materials from where they are abundant to where they are most needed. needed, building strong relationships that make supply chains more efficient. , safe and durable.
Trafigura also owns and operates a number of industrial assets, including a majority stake in global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a provider of port and logistics services, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is employee-owned and employs more than 13,000 people working in 48 countries. Visit: www.trafigura.com
Andrew Prelea, CEO of Vast Resources PLC, said:
“We are delighted to announce our new relationship with Trafigura which really highlights the potential of the Takob mine processing project in Tajikistan. We look forward to strengthening this relationship as we seek to advance other projects such as the Takob Tailings project in Tajikistan and beyond.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement is considered by the Company to be inside information as set out in the Market Abuse Regulation (EU) No 596/2014 as it forms part of UK national law under the 2018 Act on the European Union (withdrawal) (“UK MAR”) until the publication of this announcement.
For more information, visit www.vastplc.com or contact:
|Extensive plc resources
Andrew Prelea (CEO)
Andrew Hall (CCO)
+44 (0) 20 7846 0974
|Beaumont Cornish – Financial Advisor and Appointed
+44 (0) 20 7628 3396
|Shore Capital Stock Brokers Limit – joint broker
Toby Gibbs / James Thomas (Business Consulting)
+44 (0) 20 7408 4050
|Axis Capital Markets Limited – joint broker
+44 (0) 20 3206 0320
|St. Brides Partners Limited
Susie Geliher/Charlotte Page
+44 (0) 20 7236 1177
ABOUT VAST RESOURCES PLC
Vast Resources plc is a UK AIM listed mining company with mines, development projects and mineral interests in Romania, Tajikistan and Zimbabwe.
In Romania, the Company is focused on rapidly advancing high-quality projects by restarting production at mines that were previously in production.
The Company’s Romanian portfolio includes a 100% interest in the producing polymetallic mine of Vast Baita Plai SA, located in the Apuseni Mountains, Transylvania, a region that hosts the largest polymetallic mines in Romania. The mine has a JORC compliant reserve and resource report which underpins the initial mine life of approximately 3-4 years with a total in situ mineral resource of 15,695 tonnes copper equivalent with an additional exploration target of 1.8 to 3 million tonnes. The Company is currently working on confirming an expanded exploration target of up to 5.8 million tonnes.
The Company also owns the Manaila polymetallic mine in Romania, which the Company is seeking to return to production after a period of care and maintenance. The Company has also been granted the Manaila Carlibaba Extended Exploitation License which will allow it to review the exploitation of mineral resources in the wider Manaila Carlibaba license area.
Vast holds an interest in a joint venture that provides a share of the revenue generated from the processing facility at the Takob mine in Tajikistan. The Takob Mine opportunity, which is 100% funded, will provide Vast with a 12.25% royalty on all sales of non-ferrous concentrate and any other metal produced.
In Zimbabwe, the Company is focused on launching the joint venture mining agreement on the community diamond concession, Chiadzwa, in the Marange diamond fields.