March 22 (SeeNews) - UK-based mining company Vast Resources said on Wednesday it will acquire the remaining 49.9% of Sinarom Mining Group in Romania from Chinese businessman Ni Jin Ming.
Vast Resources will pay Ni Jin Ming is $1.13 million (1.05 million euro) for his shares in two stages: $400,000 by March 31, and a further $735,000 on April 30, Vast said in a press release.
Sinarom Mining Group is the main shareholder of the Manaila polymetallic mine, in Suceava county, in northern Romania. In July 2016, Vast Resources acquired 50.1% of Sinarom.
The initial payment will be funded from existing cash resources whilst the final installment payable on April 30, is expected to be funded by the company raising additional funding at the asset level, which it expects to complete shortly, Vast added.
Vast Resources also said that discussions are continuing concerning further transactions in relation to Sinarom, which could include the introduction of a joint venture partner and/or securing debt at the subsidiary company level.The move would help increase production at both Manaila and advance the newly acquired Piciorul Zimbrului and Magura Neagra licences, which are proximal to Manaila.
Both of these licences have demonstrated their prospectivity for polymetallic mineralisation and Vast is considering the potential to develop these assets as part of an enlarged Manaila metallurgical complex.
"This simplified ownership structure will, we believe, be beneficial to the continued advancement of the mine, especially with regard to potential joint venture or debt financing opportunities being considered as we continue to focus on the expansion of the mine's open pit and assess the potential for development of the adjacent new perimeters at Piciorul Zimbrului and Magura Neagra as part of a new modern metallurgical complex at the Manaila open pit," CEO Roy Pitchford said.
In February Vast said that the copper concentrate production at Manaila mine increased 44% quarter-on-quarter to 889 tonnes in the third quarter of fiscal year 2017, while zinc concentrate production jumped to 165 tonnes from 35 tonnes in the second quarter.
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.
($= 0.9444 euro)