The terms and conditions of the off-take agreement, which is valid until December 2017, dictate the off-take pricing dependent on the quality of the concentrate and are in line with industry standards with favourable payment terms to reduce Vast’s working capital constraints.
The first concentrate sale under the terms of the off-take agreement (but ahead of the off-take agreement being entered into) was on 2 September 2016 for a total of 430 tons of copper concentrate grading 18.7% copper. The steady-state copper concentrate now being achieved post the plant optimisation is grading 20% copper.
The off-take agreement with Transamine comes on the back of significant improvements at MPM and the delivery of consistent grades and recoveries at the Iacobeni processing facility where a quality copper concentrate has been produced with grades of around 19% and, crucially, low zinc content. The agreement can be seen as an independent ratification of this optimisation work and represents a significant step forward in the commercialisation of the mine, according to Vast Resources.
Vast Resources was founded in late 2005 and its core activity consists of exploration of mineral deposits in Zimbabwe and Southern Africa. In addition to the activity in Africa, in May 2013, Vast Resources has turned its attention to Romania, in view of developing its business strategy.