22nd Jan 2024 11:32
(Alliance News) - Vast Resources PLC on Monday said it executed a three-year exclusive marketing agreement for distributing high-grade platinum group metals concentrates produced in the EU.
Vast Resources is a mine development company with interests in Romania, Tajikistan and Zimbabwe.
The agreement is with a "Swiss investment company", whom Vast didn't name. Vast will receive a 2.5% commission based on the sales value of the concentrates, providing an additional revenue stream.
As part of the agreement, on behalf of the Swiss investment company, Vast Resources received an offer from Nikash Group to buy platinum group metal concentrate containing an average of 15% platinum plus other payable materials.
Dubai-based Nikash is a general trading company that originally specialised in the agricultural sector but now trades in all physical commodities, including metals.
"Under the offer, Vast will arrange the sale and delivery of, on average, two tonnes of high-grade platinum concentrate per month over a period of up to one year," Vast Resources said.
The estimated sales value based on seller assays is anticipated to be over USD100 million, Vast said.
Chief Executive Officer Andrew Prelea said: "This marks the beginning of an important additional revenue stream for Vast, building on our operations in Romania and our interests in Tajikistan, as we look to strengthen the financial performance of the company throughout 2024. We anticipate that this agreement will result in further collaborative opportunities that will strengthen the operating capabilities of Vast."
Vast Resources shares were up 11% to 0.14 pence each on Monday morning in London.
By Tom Budszus, Alliance News slot editor
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