Aim-listed Vast Resources on Monday announced that its directors will advance discussions with other parties with a view to securing replacement offtake prepayment finance for the $5.5-million Tranche B advance for its Manaila and Baita Plai polymetallic mines, in Romania.
This follows after Mercuria Energy Trading decided to not proceed with the Tranche B advance as set out under a prepayment agreement with Vast.
While some initial due diligence has already been under way by other potential offtake partners, a nonbinding indicative term sheet has been received and others are promised very shortly, the company added.
Legal work is expected to start shortly and it is anticipated that the process will not be protracted as the board believes the technical and legal due diligence that has already been performed on Baita Plai is robust and can be used to accelerate the process of securing offtake prepayment finance.
Amicable discussions are in progress with Mercuria on the future relationship between Mercuria and Vast with regard to offtake from Manaila and the obligations of the company with regard to the Tranche A prepayment finance of $4-million that was already advanced to Vast.