10th Jun 2015 16:12
LONDON (Alliance News) - Vast Resources PLC Wednesday said it has progressed its due diligence concerning the potential acquisition of the Manalia mine in Romania to a pre-sale agreement for the company to purchase a controlling stake in the project.
Vast said it will acquire a 50.1% controlling stake in Sinarom Mining Group SRL, the owner of the copper, lead, zinc, gold and silver Manalia mine. If the deal goes through, which is subject to further due diligence and the completion of a detailed agreement, Ni Jin Ming, the vendor, will retain a 49.9% stake.
However, Vast said there is a USD2 million provision for penalties in favour of Vast if the vendor pulls out of the deal.
Under the pre-sale agreement, Vast has the right, but not the obligation, to lend Sinarom up to USD5 million for the purpose of rehabilitation or further development of Manaila without any dilution of the 49.9%. interest.
Vast will assume management control of Manaila on signing of the final sale agreement.
Vast share closed up 4.6% to 1.65 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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