The British mining company Vast Resources ends the first month of 2018 with the agreement of a USD 9.5 million financing with Mercuria Energy Trading SA, its new partner, one of the largest integrated energy and trading companies worldwide.
According to a press release, the obtained funds will be invested by Vast Resources in the construction of the metallurgical complex near the Manaila mine, Suceava County and in restarting the mining activity in Bihor at the mine in Baita Plai.
The USD 9.5 million will get to Vast Resources in two installments in the first 7 months of this year. The agreement is for the period January 2018 – December 2021, and it also includes up to 100 percent sale of copper and zinc concentrates processed in the Romanian mines to Mercury Energy Trading Group throughout the collaboration.
An important benefit of this agreement is the substantially more attractive price the British company will obtain from concentrate sale, compared to other such contracts in the past.
“We are happy to enter into this contract as we anticipate that the funds will allow us to meet all our short and medium-term objectives in Romania. Our efforts are directed towards the expansion and optimization of the Manaila mine and, subject to associating on the license, the start of production in our mine in Baita Plai, with no equity dilution to shareholders,” said Andrew Prelea, CEO of Vast Resources.
Out of the funds attracted this year, USD 1.6 million will be used to return part of the loan made last year from Sub-Sahara Goldia Investments (SSGI), and the remaining money will be invested in Romania.
“The agreement being signed with Mercuria will not only allow us to create an accelerated return program of the funds agreed with SSGI, but also gives us the opportunity to reduce the monthly costs of the company,” added Andrew Prelea.
Vast Resources Plc has achieved excellent progress in recent years, and much of these are due to the evolution that mines in Romania.