August 16 (SeeNews) - UK-based Vast Resources said that it plans to acquire an indirect 29.41% interest in the polymetallic mineralisation Blueberry Project located in the Golden Quadrilateral of Western Romania.
The transaction will be paid for by issuing shares in a newly established subsidiary EMA Resources Ltd (EMA) to Blueberry Ridge – the holder of the project., Vast said in a press release on Wednesday.
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Once the shares will be issued for the 29.41% interest, EMA will have to secure funding of $1 million (876,883 euro) by the end of the month to retail the rights to go ahead with the deal.
In time, Vasts's intention is for EMA to develop into a standalone enterprise significant enough to justify an Initial Public Offering (IPO) targeted by the end of 2019.
"Work has already started at Blueberry and we look forward to reporting the results of drilling in the coming weeks in order to begin to give the market a tangible sense of the size and quality of this significant mineralised system in addition to our path to developing the project and ultimately crystallising value for Vast shareholders through a proposed IPO," Vast Resources CEO Andrew Prelea said.
The Blueberry perimeter of 7,285 sq km is a brownfield area of prospectivity in the Golden Quadrilateral located in the immediate vicinity of the now closed Baia de Aries mine. The Golden Quadrilateral has significant areas of polymetallic prospectivity - copper, zinc and lead coupled with particularly high gold and silver - and has been estimated to have produced approximately 55 million ounces of gold in the past.
The Golden Quadrilateral hosts the prolific Baia de Aries gold mine, the Rosia Montana Mine and Rovina Valley Project.
Earlier this month, Vast said it has submitted an application to Romania's National Agency for Mineral Resources (ANRM) for the right to extract polymetallic ore at the Baita Plai mine.
Besides Baita Plai, Vast also holds the Manaila mine and owns an 80% interest in a prospecting licence over the Faneata tailings dam located 7 km from Baita Plai.
Vast Resources, formerly known as African Consolidated Resources Plc, is an emerging mid-tier, multi-commodity, multi-jurisdictional development and mining company with a project portfolio covering gold, nickel, copper, phosphate and diamonds. It also owns a gold mine in Zimbabwe.
($=0.8769 euro)