The price would be EUR1 plus debts of $724,000 (on July 2, 2015). In the event that debts exceeded $770,000, the vendor has agreed to transfer to Vast as a penalty, one per cent of the 49.9% of the issued share capital of Sinarom retained by the vendor for each $14,000 by which the debts exceed $700,000, the company said in a statement.
The board of Vast company believes that Manaila, which has resources of 1.8 million tons, according to the data of Romanian National Agency for Mineral Resources, has the potential for enhanced production in the short term.
The acquisition of Sinarom complements the company’s existing asset in Romania, the Baita Bihor mine, which has a total management-estimated 1.8 million ton copper-silver-zinc-lead-gold-tungsten-molybdenum resource and is targeted for recommencement of production in the second half of 2015.
The completion of the acquisition depends on several conditions, such as certificates from the Romanian government and other agencies, to the execution of certain documents and to the release of Sinarom from certain debts and obligations.
Besides Romania, Vast also owns Pickstone-Peerless Gold Mine in Zimbabwe and other operations in Zambia.