Vast concludes 50.1% acquisition of second Romanian mine
JOHANNESBURG (miningweekly.com) – Aim-listed resource and development company Vast Resources has secured a controlling interest in Romania-based Sinarom Mining for €1 and the assumption of the Manaila polymetallic mine owner’s debt.
The 50.1% acquisition of control of the Manaila mine further cemented Vast’s plan of becoming a “significant” mining company in Romania as it moved to improve the operations of the 1.8-million-tonne resource that already had an existing mining licence, established infrastructure and the potential for enhanced production in the short term, said CEO Roy Pitchford.
Vast aimed to inject an immediate buyers loan of up to $5-million into Sinarom to bring the mine back into production, eliminate the inefficiencies of the previous mining operation and to start a capital expenditure programme.
It was expected that the first phase, which would bring about a rate of production of 10 000 t/m over the next three years, would cost around $1.7-million.
Vast’s immediate plans included the operation of one mill at a capacity of 500 t/d; the operation of two float banks to recover copper and zinc with gold and silver as by-product credits; optimising the crushing belt circuit to lower power cost and eliminate double handling of ore between crusher and mill; the refurbishment of existing equipment as required; stabilising the openpit high-wall by creating high benches and berms; and implementing in-pit grade control to minimise dilution during the mining process.
Within six months, the company aimed to install and commission a crushing circuit and a modular flotation recovery plant at the mine site.
Vast was also developing the Pickstone-Peerless gold mine, in Zimbabwe, and the Baita Bihor mine, in Romania.
The transaction remained subject to conditions precedent.
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