The financing will be drawn in two tranches in the first seven months of 2018. The off-take offer from Mercuria is for the period from January 2018 to December 2021 and includes the sale of up to 100% of the copper and zinc concentrate produced at the Manaila and Baita Plai polymetallic mines in Romania.
“I am delighted to present shareholders with our proposed financing strategy and off-take partner, which I believe could provide Vast with significantly improved borrowing and off-take terms. The opportunity to partner with a company with such prestige as Mercuria is a tremendous endorsement of our assets in Romania, and also our ability to unlock the inherent value of our portfolio of mines and projects for all stakeholders,” said Andrew Prelea, Vast Resources CEO.
Of the financing attracted this year, $1.6 million will go into repayment of a loan from Sub Sahara Goldia Investments (SSGI) taken in 2017 and the rest will be invested in Romania, the company said in a statement Thursday.
Mercuria Energy Trading Group is one of the largest independent commodities groups in the world.
Vast Resources was founded end-2005 to operate mines in Zimbabwe and South Africa. It entered the Romanian market in May 2013.