HomeEast AfricaVast Resources expands mining presence in Zimbabwe

Vast Resources expands mining presence in Zimbabwe

AIM-listed Vast Resources, with operating mines in Romania and Zimbabwe has acquired a 95% interest in the Eureka gold mine through its Zimbabwean company – Dallaglio Investments.

Vast Resources’ economic interest in Dallaglio is 25.01%.

The US$4.485 million purchase price is financed by a loan from Sub-Sahara Goldia Investments (‘SSGI’) to Dallaglio Investments.

SSGI has an effective 24.99% interest in Dallaglio and therefore funding for the acquisition has been sourced by Vast’s associated entities in Zimbabwe without recourse to Vast Resources.

“We are extremely pleased to announce the first new acquisition together with our strategic partners in Zimbabwe for many years,” comments Vast Resources chief executive Andrew Prelea.

“This demonstrates our continued belief in Zimbabwe and the ability to find robust assets to add to the Vast portfolio.

“The Eureka mine has had historical investment in excess of US$30 million in the late 1990s.

“We believe this to be a highly attractive acquisition target given the size of the resource and level of investment in equipment made to date and I look forward to providing updates regarding development and commissioning at Eureka gold mine in the coming months.

“The knowledge we have accumulated from our operations at Pickstone Peerless is invaluable in assessing the true value of dormant mines such as Eureka, that can be brought in to commercial production in the near term.

“At the beginning of this year I mentioned we will be pursuing new opportunities in both Zimbabwe and Romania that will create further value to shareholders utilising external funding and this is the first of those opportunities to do so.

“Furthermore, in the light of this transaction and of anticipated further transaction opportunities, we are giving consideration to the current holding structure of our Zimbabwe assets and will give updates to the market on this in due course,” he continues.