April 30 (SeeNews) - UK-based Vast Resources said it has received a draft proposal for a loan of up to $10 million (8.98 million) from a Swiss bank to finance its Romanian mining projects.
If contracted, the loan will support the company's Romanian projects including in full repayment of the $4 million plus accrued interest indebtedness by the company under the Mercuria Prepayment Agreement, Vast Resources said in a press release on Monday.
The term sheet itself remains subject inter alia to the negotiation of detailed terms, completion of due diligence and definitive documentation, it added.
"Whilst we have been in discussions with possible financing institutions for some time, the restructuring of the Balance Sheet and the recent disposal of our Zimbabwe gold assets enables us to shift focus towards near term cash flow projects - Baita Plai and the Heritage Diamond Concession - that are under our more direct management, and has opened up the opportunity to pursue more traditional lending media," CEO Andrew Prelea said.
In March, Vast said that its wholly owned Manaila polymetallic mine in Romania will only be reopened after a corporate restructuring, which is currently being prepared, is finalised.
"The board and management have decided to continue to keep the mine on care and maintenance temporarily in order to reduce costs, and to reopen once the refinancing of the group is completed and an effective mine plan that will achieve profitability, can be implemented," the AIM-listed mining company said in a statement at the time.
Vast Resources, formerly known as African Consolidated Resources Plc, is an emerging mid-tier, multi-commodity, multi-jurisdictional development and mining company with a project portfolio covering gold, nickel, copper, phosphate and diamonds. It also owns a gold mine in Zimbabwe.
($=0.8982 euro)