25th Feb 2015 11:29
LONDON (Alliance News) - Vast Resources PLC on Wednesday said it has made progress on its plan to acquire the Baita Bihor mine project in Romania.
The company said due diligence work on Mineral Mining SA is progressing. Mineral Mining is subject to an insolvency proceeding in Romania and owns the Baita Bihor mine.
It added the due diligence work on the Baita Bihor polymetallic mine is nearing completion and said the business will be integrated into its African Consolidated Resources SRL subsidiary.
Vast has increased the equity interest it has the option to acquire in Mineral Mining from 68% to 80%, bringing forward an initial payment of GBP200,000 but no further additional acquisition cost for Vast.
"The opportunity to increase our option to acquire an interest in Baita Bihor from 68% to 80% at no material extra cost will significantly improve to our future prospects, particularly as the minority interests will all be held by our Romanian senior management and other employees," said Roy Pitchford, Chief Executive of Vast.
Shares in Vast were down 5.5% to 0.712 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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